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June CPI data support the market view that the likelihood of a Fed rate hike is overestimated
Svmuu News: Tony Welch of SignatureFD said the market has overestimated the likelihood of a Federal Reserve rate hike. Following weak CPI inflation data in June, the futures market has priced in a low probability of a rate hike this month, but data from CME Group indicates that at least one rate hike this year remains possible.Welch noted that inflation is trending downward regardless of fluctuations in fuel prices. He added that he currently sees no wage growth that could sustain broad-based inflation across the entire economy over the long term.Welch expects Federal Reserve Chair Wash to attempt to keep inflation expectations near the Fed’s 2% target and to use his remarks to help set and maintain stable inflation expectations.
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