Navigating Inflation After the Debt Ceiling

A deal to raise the US debt limit has been reached, but investors still face challenges from stubbornly high inflation and potential interest rate hikes. The deal includes spending caps until 2024 and lower funding for the Internal Revenue Service, but it still needs to pass a vote in Congress. Inflation remains high, with the personal consumption expenditures index rising 4.4% from a year ago, and markets are now betting on a Fed rate hike in June. The global economy is also grappling with persistent inflation, forcing central banks to consider raising rates further than expected.