In a special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi said, there is tussle between money power and economic indicator in the United States, as the country is set to release its May inflation data today, which is expected around 4.7 per cent. 

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Singhvi said, the latest data shows that the inflation is between 4-4.5 per cent, whereas the Fed Reserve’s acceptable mark is around two per cent inflation in the country. 

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Despite the inflation being double than the Fed Reserve’s expectation, the US markets are trading near all-time high levels, added Singhvi. 

Similarly, with rising inflation, bond yields should rise, however, bonds have fell for around one and half per cent 3-month low, defying the trend, this indication from bond market is likely boosting the confidence of US investors, the market guru added.

The US markets are already near all-time high levels, and has helped investors to make money and because of which they are in abundance of cash and ready to invest more, explains Singhvi. 

This bond market trend points out that the investors should not be scared to May inflation data should and this will fade out eventually and inflation will be in control in some time, further explains Singhvi. 

Similarly, once things are under control, the demand and growth would not only be maintained but also rise eventually, the market guru said. 

Before concluding, Singhvi pointed out that the US markets would give a big move after May inflation data is released, as they have been mute or stale for some time now. He added, the chances of US markets continuing its bull run would be quite low after the inflation data announcement.