June CPI Report Comes In Hot, Fed Fund Futures Retreat After Initial Shock

The June CPI print came in at 9.1% on Wednesday on expectations of 8.8%. This was higher than expectations and the report did not give Fed officials any reprieve from persistently high price pressures. Shelter was problematic and so was gasoline. Hotels benefitting from revenge spending contributed as well. The initial market reaction was likely somewhat extreme in Fed Funds Futures markets which priced in a 100% chance of a 100-bps point hike. This level would be the largest single hike since ...

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