-
Heads Up: Brace for a Hawkish FOMC Meeting
In the preview report we wrote on June 6 that outlined our views about the June 15 FOMC meeting, we made the case for why a 50 bps rate hike was all but assured. But, that report was written before the May CPI data were released on June 10,which showed that inflation was once again higher than expected. Specifically, the overall CPI rose 1.0% in May, which boosted the year-over-year rate of inflation to 8.6% (Figure 1). Furthermore, the data were disheartening because they showed broad-base price pressures in the economy. In short, the Federal Reserve appears to be further "behind the curve" in its efforts to reduce ... (full story)