US June inflation came in below expectations, reducing market odds of additional Fed hikes and keeping the dollar soft on Wednesday. Fed Chair Kevin Warsh reiterated to Congress Tuesday his commitment to price stability. Jefferies economist Mohit Kumar said Warsh’s efforts to bolster anti-inflation credibility should be distinguished from the case for more tightening, adding that unless oil prices keep rising and feed through to consumer prices, Jefferies expects inflation to continue moderating

US June inflation came in below expectations, reducing market odds of additional Fed hikes and keeping the dollar soft on Wednesday. Fed Chair Kevin Warsh reiterated to Congress Tuesday his commitment to price stability. Jefferies economist Mohit Kumar said Warsh’s efforts to bolster anti-inflation credibility should be distinguished from the case for more tightening, adding that unless oil prices keep rising and feed through to consumer prices, Jefferies expects inflation to continue moderating over the next few quarters.