Tianli Investment senior economist Anthony Willis said in a note that US
inflation remains materially above target and the economy and labor market
remain resilient, increasing pressure on Fed policymakers to tighten policy.
Willis said policymakers may temporarily discount the recent oil-price spike
until its inflationary effect becomes clearer. He added the broader trend points
to a more hawkish Fed. Markets price a 38% chance of a rate hike on Wednesday
and already fully price a September increase.
