GIC Pte Group Chief Investment Officer Jeffrey Jaensubhakij has warned that the market exuberance following Wednesday’s outsized interest-rate cut could be short-lived amid the risk of rising inflation.

The US isn't out of the words with inflation, and one fixed-income strategist thinks the Fed's jumbo rate cut will make matters worse.

Here’s how inflation and the cost of borrowing have changed since the Fed started raising interest rates in March 2022. After peaking at 9.1% in June 2022, inflation has eased, falling to a three-year low of 2.5% in August, just above the Fed’s 2% target rate.