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JPMorgan Sees May as CPI ‘High-Water Mark’ With Fed Set to Hold

JPMorgan Sees May as CPI ‘High-Water Mark’ With Fed Set to Hold
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JPMorgan Sees May as CPI ‘High-Water Mark’ With Fed Set to Hold JPMorgan Asset Management’s David Kelly predicted the Federal Reserve will decide that the latest inflation data aren’t worrisome enough to prompt policymakers to do anything other than stand pat on interest rates next week. May’s reading of the consumer price index accelerated to the fastest in more than three years as the Iran war pushed up energy prices, outstripping Americans’ pay gains. But an underlying measure, which...

JPMorgan Sees May as CPI ‘High-Water Mark’ With Fed Set to Hold JPMorgan Asset Management’s David Kelly predicted the Federal Reserve will decide that the latest inflation data aren’t worrisome enough to prompt policymakers to do anything other than stand pat on interest rates next week. May’s reading of the consumer price index accelerated to the fastest in more than three years as the Iran war pushed up energy prices, outstripping Americans’ pay gains. But an underlying measure, which removes food and energy costs, rose less than expected. While the Fed will be left feeling “somewhat uncomfortable,” those numbers may mark inflation’s peak, said Kelly, chief global strategist at JPMorgan Chase & Co.’s asset management unit.
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Originally published by Bloomberg Markets Read original →