Don't panic, inflation expectations remain anchored

The latest price figures, all higher than expected in January, were a reminder that the disinflation process was unlikely to be as strong and fast as the inflationary surge that had preceded it. The markets, which had previously been expecting a monetary policy easing in the summer, revised their views and, conversely, raised their expectations for the terminal rate. And what about the Fed? Will it reverse its latest move and return to 50bp rate hikes? It would have an incentive ...