The Australian's Washington correspondent Adam Creighton says there is a lot of confusion in financial markets around the world.
'Central banks are in this huge bind globally, whether it's the Fed or the RBA or the Bank of England, where we have these short to medium term fairly sizeable significant inflationary pressures,' Mr Creighton told Sky News Australia.
'In the US the inflation rate is more than double the target of 2 per cent. It's about 5.4 per cent.
'It's the same in the UK. Australia too is up to about 4 per cent.'
