Economic Data is Strong, But Inflation Remains Stubborn

It has been another tough week for bond yields. While there are signs that the Federal Reserve’s hiking is starting to have an impact on growth, economic data remains solid and inflation remains higher than desired. Second quarter GDP and Durable Goods Orders came in stronger than expected this week, while inflation data, although improving, came in stronger than the 2.00% target. Financial markets will now focus on this Friday’s employment data and next week’s CPI (inflation) report.