“With the US banking sector suffering a credit crunch following recent bank failures, and a buyout of First Republic…only just secured by US regulators and JP Morgan, the Fed will be weighing its rate decisions carefully from this point on,” Rust wrote. “However, if inflation refuses to budge, we could well see another hike, despite tighter credit conditions. It’s worth remembering that while a 5% inflation rate is lower than last year, it still points to rapid price rises from already elevated levels.
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