As the world commemorates the one year anniversary of Russia’s invasion of Ukraine, the inflationary consequences still linger. Thanks to the growth of base effects and mild weather, prices of crude oil and gas are decreasing annually and month-over-month. But, it is the underlying core prices that have been rising quickly and consistently. Thursday, the Commerce Department reported that core personal consumption expenditures, a measure the Federal Reserve closely monitors, increased at a faster-than-expected 4.3% compared to the original estimate of 3.9%. This has sparked the fear that an even harsher rate policy may be needed to contain the rising inflationary pressures.

Despite U.S. jobs numbers on Thursday pointing to a tight job market, markets are now bracing for as many as three quarter-point interest rate hikes to as much as 5.25-5.50% with