The Federal Reserve takes on Trump—and stubborn inflation

A lot is driving on the numbers after the decimal level. Within the argot of buyers, inflation in America is again to having a “two-handle” (that’s, working above 2% however under 3%). It’s a much better place to be in than a few years in the past, when value rises had been threatening to hit double digits. However there’s a huge distinction between inflation decelerating in the direction of 2% within the coming 12 months or getting caught nearer 3%. Not solely would the latter forestall aggressive interest-rate cuts by the Federal Reserve, it might additionally put the central financial institution on a collision course with Donald Trump—a double-whammy of financial hawkishness and political turbulence that may solid a shadow over the worldwide financial system.