TS Lombard analysts Freya Beamish and Alexandros Xenofontos said in a report that the US inflation rate may stabilize at around 3%, rather than the 2% target set by the Federal Reserve. Policymakers insist on reducing the inflation rate to 2%, but Beamish and Xenofontos believe that the continued excess liquidity of the US dollar will cause prices to rise faster, even if the latest data is more moderate than the 4% implied by the first quarter data. They stated that the higher inflation outlook poses a threat to long-term bonds and could also pose a threat to valuations, implying higher ultimate interest rates. However, from the perspective of the real economy, this may be a reasonable outcome and may be beneficial to capital goods and other industries.