Thornburg Investment Management Portfolio Manager Christian Hoffmann in Barron’s

Inflation Is a Problem. The Solution Could Be Worse.

Inflation continues to hover at its highest point in four decades. It’s no surprise, then, that the Federal Reserve took drastic action to curb rising prices, opting to raise interest points by three quarters of a point, to a range of 1.5%-1.75% on Wednesday. But the Fed’s inflation remedy may be a bitter pill to swallow for most Americans.

Many strategists applauded the central bank’s decision to be more proactive in cooling inflation, especially after a flurry of bad inflation data dropped over the course of the last week. Consumer prices rose by 8.6% in May from a year earlier, faster than expected, while a separate report pointed to a sharp rise in consumers’ long-term inflation expectations.

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