This week’s August inflation report for the US was undoubtedly disappointing. But the take-away – that the Federal Reserve’s tightening cycle has a lot further to run – should have come as no surprise. Another 75 basis point rise in rates at next week’s Fed meeting was likely before the inflation news, as we said last week. Investors should now be watching to see how high the central bank expects rates to rise, and for how long. The quarterly update of the Fed’s economic projections, and the “dot plot” of where the central bankers expect interest rates to go will be released next Wednesday, along with this month’s rate decision.