Hot US inflation data causes concern

The Fed is likely to signal that it will pause in its rate hikes after the next few raises, as US consumer strength is expected to wane over the next few months following numerous rate increases.

A cascade of hot inflation data seems to indicate that inflation has yet to be tamed in the United States, throwing markets into jitters amidst concerns over further interest rate hikes.

Yet the recent collapse of two US banks with big losses in their bond holdings following eight rate hikes, has given rise to fears of systemic risks, and put pressure on the US Federal Reserve (Fed) to limit further rate increases, and even to cut rates later.