Kevin Walsh is caught in a dilemma, The U.S. inflation data just came out, and it’s surprising. CPI is at 3.7%, the highest level in 4 months, Core CPI has risen to 2.6%, the highest in 3 months. The U.S. job market is severely weak, yet inflation remains high. If the Fed keeps rates unchanged, there’s a risk of inflation rising further. If the Fed raises rates, there’s a risk of worsening the job market. He has to make a tough choice now.