Inflation: transitory, persistent – or both?

While many economic observers, including the Federal Reserve (the Fed), have said that U.S. inflation is likely to be transitory, it may not actually be that simple – especially after the latest CPI numbers. April CPI’s core reading surprised to the upside (+3%), with the highest year-over-year increase since 1996. Fortunately, we’ve been modestly defensive in our municipal bond (munis) portfolios because our view is that munis – at least in the short run – can be pulled along with U.S. Treasury yields in either directio