- Many thought that U.S. inflation expectations peaked in March this year as April numbers saw a decline across both headline and core CPI.
- While a 50bp hike is already known, what is more noteworthy is the 20% probability at the time of writing that the policy rate may rise to 1.50-1.75% which would likely be a 75bp hike.
- The personal consumption expenditure (PCE) index will be a key release in May as core PCE is a preferred measure used by the Federal Reserve to gauge inflation temperatures in the market.
For further details see:
Will The Fed Raise By 75 Basis Points?