- Supports keeping current policy rate in place as long as upside risks to inflation continue
- Inflation expectations have risen, coming policy changes hold upside risks
- Takes comfort that increases in long-term inflation have so far been small
- Recent high inflation, consumer expectations may be more sensitive to further price increases
This is obviously being ignored but there is a hawkish shift unfolding at the Fed and the 80% chance of a June cut that’s priced in is too high.
This article was written by Adam Button at www.forexlive.com.