FOMC inflation concerns likely to rise in tomorrow’s report
Tomorrow’s FOMC announcement is likely to keep rates unchanged but to contain strong inflation warnings. After today’s inflation data, including the highest year on year reading since 1991 in the PCE Price Index, expect the FED to mention inflation expectations and their moored or unmoored status. Food and Energy Prices are bound to be discussed and there may be a nod to Plosser’s contention that the FED needs to pay more attention to headline inflation in it’s policy response. More on the FOMC throughout the day.