U.S.: A Key Pressure Gauge Is In The Red Zone

The trade deficit can't absorb surging demand indefinitely

In recent years, the U.S. economy has enjoyed two important safety valves that have vented inflationary pressures in the face of potent demand. Now, there's a problem: Both of those valves are wide open, but the pressure is still building. That's why the Federal Reserve raised interest rates on Mar. 21 for the fifth time since June, 1999. More important, it's why more hikes are on the way.

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