A statement by Huw Pill indicates that second-round effects on inflation are now expected to be stronger than initially estimated during the initial inflation targeting period. This development comes as markets closely monitor Federal Reserve decisions on interest rates amid fluctuating inflation dynamics. Market data reveals a shift in expectations, with decreased probabilities for rate cuts at FOMC meetings scheduled between July and October 2026. The likelihood of the Fed maintaining or increasing rates appears to have gained traction among market participants.
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