Nomura citing the blockbuster inflation report, of course:
Nomura say it's a close call:
"The Fed’s inflation problem has worsened, and we expect policymakers to react by scaling up the pace of rate hikes to reinforce their credibility.”
Fed officials are already laying the groundwork too:
- Fed's Bostic: Asked about 100 bps hike says 'everything is in play'
- Fed's Barkin: CPI report "certainly makes the case even stronger" to fight inflation
All the Fed need to do is look north, BoC showing how to do it:
The Fed blackout period begins July 16. They've got a few days to signal +100bp to markets. Of course, they could always leak it like they did the last time.
The FOMC announcement is on July 27.
