The Fed announced the CPI for May: 0.6% is still at a fast pace. But I don't think we should worry. The rates announced so far match Claudia Sahm's predictions: If we look at the PCE index, inflation has started to made-up its dip in 2020, but this does not necessarily imply that tightening is needed(say within 1-2 months). By the end of this year, inflation may fall as base effects, and supply bottlenecks may work in reverse. In this case, tightening will cause inflation to fall below the average. For example:
There is no reason to worry - yet
There is no reason to worry - yet
There is no reason to worry - yet
The Fed announced the CPI for May: 0.6% is still at a fast pace. But I don't think we should worry. The rates announced so far match Claudia Sahm's predictions: If we look at the PCE index, inflation has started to made-up its dip in 2020, but this does not necessarily imply that tightening is needed(say within 1-2 months). By the end of this year, inflation may fall as base effects, and supply bottlenecks may work in reverse. In this case, tightening will cause inflation to fall below the average. For example: