Reported about 8 hours ago
Investors are betting on the greatest divergence in inflation between the U.S. and euro zone since 2022, influenced by differing economic growth, trade tariffs, and recent reductions in European energy costs. Current inflation swap rates indicate U.S. inflation is expected at 2.8%, compared to 1.9% for the euro zone, despite concerns about U.S. economic performance. Factors like tariff impacts and a potential peace deal in Ukraine have led to this unusual disparity, while expectations for Federal Reserve rate cuts have increased amid worries of slowing growth.
Source: YAHOO