On May 25th I wrote a post regarding the prospect of “higher and for longer” and said that those four words scared the hell out of me. Well, based on the latest CPI reading of 8.6%, the prospect of higher for longer seems more likely. Markets may finally be coming to a similar conclusion as both bond and stock markets are off substantially. Why did it take so long to sink in? The FOMC meets again next week. It wouldn’t shock me if they announce that September’s meeting will also result in a 50 bps increase in the Fed Fund’s Rate. More to come.