Fed Seen Holding Rates After May CPI Hits 3-Year High as JPMorgan Flags Inflation Peak

3 articles · Updated · Bloomberg · Jun 10

Next week’s Fed meeting is likely to end with rates unchanged, according to JPMorgan Asset Management’s David Kelly, who said the latest inflation data are not alarming enough to force action.
May consumer prices rose at the fastest pace in more than three years after the Iran war lifted energy costs, squeezing households as price gains outpaced wage growth.
Core CPI — which strips out food and energy — increased less than expected, giving policymakers some cover to stay on hold despite discomfort over the headline acceleration.
JPMorgan said that mix could make May a high-water mark for inflation, reinforcing the case for patience rather than an immediate policy shift.

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With markets pricing in a rate hike, is the Fed risking its credibility by ignoring war-fueled inflation?

If inflation has peaked, why do Americans' wages still buy less and when will they feel real relief?

Can the Fed truly control inflation, or is the US economy now a hostage to the war in Iran?