The continued weakness of core inflation, which fell to a two-year low of 1.7% in May, presents a dilemma for Fed officials. It won’t stop them from hiking interest rates later today, but it increases the downside risks to our forecast that there will be a further two rate hikes in the second half of this year.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.