Interactive Brokers economist: Market sentiment is high and could potentially lead to a fresh wave of inflation

According to a report by Jin10, Jose Torres, Senior Economist at Interactive Brokers, stated that the high market sentiment has led to financial conditions reaching the most accommodative level since the Federal Reserve's tightening actions. This could trigger a new round of inflation. He pointed out that due to expectations of accelerated inflation in the coming months, prices of all major commodities have risen significantly. Torres believes that Powell is discussing rate cuts too early. Robert Brusca, President of Fact and Opinion Economics, stated that it is puzzling how they will lower the inflation rate to 2% if the Federal Reserve starts cutting rates. He added that strong wage growth is also driving inflation.