Chart - Z1P, page-6532

United States Inflation Rate vs United States Fed Funds Rate




There is a gap in your thinking though.

Will the US witness inflation EXCEEDING the target inflation set by the FED?
How long does the FED project that inflation to last?

Only then will they consider adjusting the interest rate. SO nothing is certain.

As a side note why are other traditional safe havens not increasing in value?

IMO The USA has not recovered yet. I'm all for hedging bets and bonds may be an option but there is disparity in that other "safe" investments are not rising. The IMF has also released a recent report saying they see interest rates globally being subdued if not even going negative. On the home front we are seeing 3 of the big banks drop their interest rates voluntarily..... ask yourself why?

Lastly IMO the reason the bonds are going up is because quite simply they are in recovery mode. It is not because they are at all time highs on the back of a multi year bull run. .......and just last night it dropped 4%. Seems pretty volatile for a "safe haven"