Economies from the United States to Germany to Britain are showing an unexpected pick-up in business activity, but markets are again giving a thumbs-down to these indicators. Just as inflation once again becomes the biggest pain point for investors after they conveniently put away such worries last month, strong growth cements the case for higher interest rates. Fed funds futures traders are now pricing for the Fed’s benchmark overnight interest rate to reach 5.36% in July and end the year at 5.18%.


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