Joshua Shapiro Drift Quotations

We continue to expect the Fed funds target to reach 5 percent in the second quarter of next year, which is where we see the tightening process ending. Comments from Fed officials suggest that they expect only a temporary hit to growth from higher energy prices, while concern about a drift up in core inflation is increasing.

While this was obviously a good month, we don't expect this to continue. We think it's going to be a slow drift up in core inflation going forward.