markets are still absorbing jerome powell’s short and clearly hawkish message there are signs that inflation has yet to be defeated which means that rates aren’t only likely to rise more than markets think but also more than central banks have suggested after two months of goldilocks bond and equity markets have begun to tumble the risk now is that we retest equity lows and credit markets start to weaken in earnest inflation is still the problem it has not been defeated yet in fact it looks likely to remain elevated for some time to come because energy prices and rents just won’t come down that means rates are likely to rise not only more than markets think but also more than central banks have suggested