SPY - What Should Investors Watch For In June's Fed Meeting?

• Logistic bottlenecks and shortages due to hot goods demand means that we are getting inflation, that the Fed plans to attack with rate hikes.
• They know very well that we are facing a potentially decimating stagflationary environment if rate hikes aren't handled with care.
• We expect the tone of the next meeting to remain vague, where rate hikes will have to be contingent on spending conditions.
• We think the strongest message they will send is that some rate hiking will be assured, but some inflation will be allowed to persist for now. We offer some stock ideas for the situation.
• Ultimately, the Fed is pretty powerless in the face of current economic challenges. But we think inflation could be close to peaking as mortgage rates near 6% and on Japan data.

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