EconomyInflation Is Cooling, but Is 2% Out of Reach?

BlackRock’s Rick Rieder says the latest CPI report gave markets reason to celebrate, though inflation remains above the Federal Reserve’s 2% target. He says the economy is “in the ballpark” and that higher overnight rates may not be the best tool for lowering inflation. Markets may instead be more concerned about the long end of the yield curve, where fiscal deficits, heavy Treasury issuance and AI financing are lifting real rates.