Wednesday’s US CPI matched forecasts: May headline CPI YoY +4.2%, core CPI YoY
+2.9%. The print bolsters the view the Fed will hold policy rates at 3.50%–3.75%
at the June meeting and sustain a higher-for-longer stance. Ahead of the
release, CME FedWatch showed a 98% probability of a June hold; markets still
price roughly one 25bp hike by year-end.