June Inflation Supports View That Markets Overprice Fed Hike

Dow Jones07-14 23:02

1502 GMT - Markets overestimate the likelihood of interest-rate increases by the Fed, SignatureFD's Tony Welch says. Futures markets price lower odds of a hike this month following June's soft CPI inflation data, but at least one rate increase this year remains in the cards, according to CME. Welch says inflation is trending lower, regardless of volatile fuel prices. "We just are not seeing the types of wage gains that would support broad economy-wide inflation for a long period of time," he says. He expects Chairman Warsh to try to keep inflation expectations around the Fed's 2% target. "I do believe he's trying to use his words to help set, keep inflation expectations anchored," he says. (paulo.trevisani@wsj.com; @ptrevisani)

 

(END) Dow Jones Newswires

July 14, 2026 11:02 ET (15:02 GMT)

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