"An Absolute Shocker": Core CPI To Hit 4% In Two Weeks? | WHAT REALLY HAPPENED

"An Absolute Shocker": Core CPI To Hit 4% In Two Weeks?

While pundits debate whether the record usage on the Fed's reverse repo facility, which last week hit a record $485BN before easing back modestly...
... will be the technical catalyst that forces the Fed to finally hike the IOER by 5bps at the June meeting (a move which Powell will repeat several hundred times is not indicative of the Fed's broader monetary policy to avoid a panic puke), a bigger threat to the Fed's overall (and overly dovish) monetary posture is that as Nordea wrote last week, there is a clear risk that the May inflation report published on June 10, "will prove to be an absolute shocker with used cars and trucks up by 50% year over year, and a potential further increase in the yearly increase in the rent of shelter component."

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