Is Inflation Starting to Impact Equity Returns?

Fed funds futures for 2022 and 2023 have broken out to new highs, likely on the back of rising inflation expectations. As things stand now, the market is looking for three hikes by the end of 2023, with the effective fed funds moving from 8bps today to 85bps.

Just today the New York Fed released its monthly inflation expectation survey, and it climbed to new highs.