- Recently there's been a dearth of progress on lowering inflation
- Inflation still too high but should moderate in H2
- Expects inflation at 2.5% this year and 'closer' to 2% next year
- Wage gains still too high relative to 2% inflation goal
- Economy moving into better balance
- Fed will watch all data to make decisions on policy
- Inflation expectations have been stable
This is more of the 'higher for longer' rhetoric. The market is pricing in a roughly 50/50 chance of a Sept high with just 34 bps priced in for the year.
