US Inflation Roadmap Paved with Multiple Rate Hikes

The US Federal Reserve's decision to raise interest rates by 0.25% has sparked concerns about the underlying inflation trend in the country.

According to Robert Sockin, chief US economist at PGIM, it will be a long road before US inflation returns to its 2% target level.

The Fed's Open Market Committee voted to increase the base rate by 0.25%, but signaled one additional rate hike this year.

Eight out of eighteen officials forecast three hikes in this cycle, with chairman Warsh likely being among them.

Sockin noted that the long-run neutral interest rate has ticked up slightly, indicating a higher target interest rate is needed to achieve neutrality.