With the U.S. Federal Reserve signaling it is firmly focused on taming inflation, a swift pace of monetary tightening is likely to continue in the months ahead. U.S. inflation data, particularly the surprisingly strong and broad-based May CPI (Consumer Price Index) report, pressured the Federal Reserve at the June meeting to hike the fed funds rate 75 basis points (bps) for the first time since 1994. Fed officials’ new economic projections show they unanimously agree the fed funds rate needs to be above neutral by year-end, despite the likely costs of slower growth and higher unemployment in 2022 and 2023. While the ... (full story)