Central banks are pausing their interest rate hiking cycle but inflation is not back at their 2% target. This puts upward pressure on longer-dated interest rates at a time when US economic activity is about to slow from elevated growth rates. Central banks signal that they are done. Over the summer, central banks around the world have started to pause their interest rate hiking cycle and signaled that they think monetary policy is restrictive enough to bring inflation back down to their 2% target on a sustainable basis. In doing so, central banks are basically saying that they are done and going into a wait-and-see ... (full story)