After pricing out the possibility of another rate hike this year, Tuesday's stronger than expected reading on Consumer Prices whipsawed bond traders, forcing them to price back in the possibility of a rate hike as early as next month.
Adding to the ever-shifting mood, Federal Reserve official Dennis Lockhart suggested the markets may see one, two, or even three rate hikes this year, more than the market currently anticipates, further destabilizing the already fragile market's emotional state.
It's is true that readings on inflation have risen of late, with core Consumer Prices, which exclude volatile food and energy costs, touching, or even mildly exceeding the Fed's 2 percent objective.
However, the Fed's preferred measure of overall inflation, the core PCE Deflator, remains a few tenths of a percent below target, suggesting patience may still be a virtue.