The Fed's Expectations for Inflation

The unnatural levels in the market have lasted longer than expected. In 2020 and 2021, we saw some correction, but now we may see interest rates increase to at least five and a half percent. This depends on whether inflation has settled down. If not, rates may need to go even higher to slow things down. However, there is a high level of bullishness and expectations for lower rates among fund managers. So, the expected counter trend rally may not come soon.