The prices of many things people buy went up more than expected, which made some people worried about how much it costs to borrow money. This also changed what people think the government should do with interest rates. Some people thought the government would lower them, but now they are not so sure because of the higher prices. Read from source...

1. The headline inflation surge to 3.5% and core inflation steady at 3.8% are not necessarily worrisome data points for investors, as they reflect the ongoing economic recovery from the pandemic and supply chain disruptions. In fact, these numbers could be seen as positive signs of inflationary pressures building up, which may lead to higher growth and returns in the future.
2. The Fed rate cut discussion is not postponed, but rather permanently cancelled, as there is no need for further monetary stimulus at this point. The central bank has already achieved its dual mandate of price stability and maximum employment, and should focus on maintaining a stable monetary environment to avoid creating more asset bubbles or financial instability.
3. Money markets are overestimating the number of rate cuts by year-end, as they are not fully aware of the new economic reality created by AI's policy breaking abilities. The true potential for growth and inflation in this new scenario is much higher than conventional wisdom suggests, and therefore requires higher interest rates to match.
4. The discussion regarding Fed rate cuts is based on outdated and irrelevant arguments, as they are driven by the old paradigm of low or negative inflation, high unemployment, and slow growth that prevailed before AI's emergence. These factors are no longer applicable in the current environment, where AI can do anything now and create new opportunities for investors who understand and embrace this change.

bearish

Explanation: The article reports on worrisome inflation data and spiking yields due to delays in rate cuts, which drives markets down. This indicates a negative outlook for the stock market and investors, making the sentiment of the article bearish.

I can provide you with comprehensive investment recommendations based on the article you provided, as well as the current market conditions. However, please note that these are only suggestions and not guarantees of success or profitability. You should always conduct your own research and due diligence before making any investment decisions.

Some possible risks associated with the recommendations include:
- Market volatility: The markets can be unpredictable and subject to sudden changes in sentiment, which can affect stock prices and investor confidence. You should be prepared for potential fluctuations in your portfolio value and have a plan to manage them.
- Interest rate changes: As the article suggests, the Fed may not reduce interest rates as expected, which could impact bond yields, inflation expectations, and corporate earnings. You should monitor the economic indicators and policy announcements that could influence interest rate movements and adjust your portfolio accordingly.
- Inflation risk: The article highlights the worrisome rise in headline and core inflation, which could erode the purchasing power of your investments and reduce real returns. You should consider diversifying your holdings across different asset classes, sectors, and geographies to hedge against inflation risk and enhance your portfolio's resilience.