Interesting Inflation

While the Fed increased short-term rates by one-quarter-of-one percent, as expected, it’s their intention to raise rates again this year by the same amount that was mildly surprising. With inflation slowing across the globe and core CPI down steadily since January, the Fed needs faster wage inflation and the end of a series of one-off price declines to proceed. The chances of another rate rise this year, at best 60/40.