Fed’s Kugler: Latest data indicate progress towards 2% inflation may have stalled

• 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.