One piece of data, a world of fallout.

From Marketplace, I'm Sabrie Beneshore,

infra David Brancaccio.

Yesterday's revelation that inflation wasn't coming down quite as fast as a lot of people

had hoped is making investors rethink some things.

Interest rates might have to stay higher for longer than they thought.

And that is sending waves not just here but around the world.

Marketplace is Nancy Marshall Genser explains.

The Fed's higher interest rates mean investors buying things like US Treasury

bonds get a higher return.

Demand for dollars soars.

That makes the dollar stronger worth more than other currencies.

That can make it harder for other countries to pay for commodities priced in dollars like oil and to pay back loans

made in dollars.

So they try to make their currency stronger by raising their interest rates, even though

that may not be the best medicine for their economies.

Ben Kumar is head of equity strategy at seven investment management.

You need to try and make yourself as attractive as you were compared to the US and that usually means higher

rates.

And Kumar says we're not just talking about developing nations here.

Japan is facing pressure to raise its interest rates

which have been low for a very long time. I'm Nancy Marshall Genser for

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