Market-Based Inflation Gauges Are Flashing Warning Signs For months, investors have clung to the belief that inflation is fading and that the Federal Reserve will eventually pivot back toward lower interest rates. But beneath the surface, market-based inflation indicators are beginning to tell a far more dangerous story. Oil prices are climbing again. Shipping disruptions near the Strait of Hormuz are increasing fears of a prolonged energy supply shock. Commodity traders are quietly repricing inflation expectations higher. Bond markets remain dangerously complacent. And once energy inflation starts feeding back into the broader economy, the Federal Reserve may find itself trapped all over again. This is exactly the type of inflationary spiral Austrian economists have warned about for decades: central banks…
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