Inflation is going to remain in the top half of the target range and (it's) all very consistent with monetary policy needing to remain relatively tight for some time,

It appears that U.S. inflation and interest rates are becoming once again the center of attention.

The peak of the interest rate cycle may be much higher than expected. Continued inflation in the US indicated a need for a rate hike for few more times until next year.

Of the two main challenges for the Fed, a slight slip in activity versus a pick-up in inflation, we think insuring long- term price stability is the more pressing issue.

Inflation in March will probably be lower because school tuition won't be in the mix. (The car fuel) ethanol could be a factor but March is traditionally low for inflation, so I see a result of about 0.3 percent.

But we aren't in charge of the policy lever.