How is inflation affecting rates?

There are a few things the financial markets are saying are important for interest rates, stocks, and the economy. One of them is inflation. The March Consumer Price Index (CPI) came in at 2.6% year-over-year, the highest level since August 2018. While there are key indicators pointing to higher consumer inflation over the next three months, the market is forward-looking. As such, bonds are anticipating where inflation is going to be four months down the road. As a result, the bond market is not worried about inflation. After all, if they worried the rates would be higher.

All that being said, it is still a great time to take advantage of the current interest rates. Feel free to reach out to Scott Bennett at 503-703-4699 or scott@altmo.com to talk about your current situation.