🚨 US ECONOMY IS STILL STRONG, AND THIS'LL CONFUSE THE FED. Just now, US ISM PMI data was released, and it came in at 54.5. This is the 9th consecutive print above 52 and shows that the US economy is in the expansion phase. Strong ISM data also means higher inflation expectations, and that's not what the Fed wants. So, this leaves them with two choices. Hold the rates and just wait. But doing that will push yields higher as the market knows inflation isn't going away soon. Hike the rates to push down inflation. But doing so will cripple the economic growth and bring even bigger challenges. This means one thing is clear: the Fed has no easy path left now.