Stubborn US inflation, delayed Fed rate cuts could mark a painful adjustment for investors

THIS column last broached the topic of inflation and interest rates in December, right after the US Federal Open Market Committee (FOMC) indicated no further rate hikes were likely.

It was a watershed moment for markets: the era of rate cuts had officially begun.

Since then – even before the Federal Reserve has delivered a single rate cut – expectations about the pace and magnitude of US monetary policy loosening have been dialled back in the face of stronger-than-expected economic data.

Earlier this month, for instance, …