Hotter inflation fails to shake US markets out of lethargy

Investors showing confidence that the Federal Reserve is deftly handling a rebound in economic growth

CHICAGO: Investors are not freaking out over a spike in US inflation in the past two months, showing confidence that the Federal Reserve is deftly handling a rebound in economic growth even as it leaves markets guessing about how it defines “transitory” when it talks about price increases.

In fact, Wall Street’s benchmark index inched to a record high after days of sideways trading, and US Treasury yields eased after Thursday’s Labour Department report showed the consumer price index (CPI) in May had its biggest year-on-year jump in 13 years.