Fed governor Waller said the US labor market has stabilized while inflation has re-accelerated, and that inflation risks now exceed employment risks—a full reversal from a year ago when weak jobs supported rate-cut bets. He said policy focus should shift back to containing inflation. Markets are focused on June CPI due July 14, the last major inflation print before the Fed's July 28-29 meeting. International oil has fallen to roughly $70/bbl, but Fed officials still expect year-end inflation to

Fed governor Waller said the US labor market has stabilized while inflation has re-accelerated, and that inflation risks now exceed employment risks—a full reversal from a year ago when weak jobs supported rate-cut bets. He said policy focus should shift back to containing inflation. Markets are focused on June CPI due July 14, the last major inflation print before the Fed's July 28-29 meeting. International oil has fallen to roughly $70/bbl, but Fed officials still expect year-end inflation to be materially above the 2% target. Markets price a hike by September at the latest; July hike probability is about 25%, and several officials have signaled further tightening.