Bloomberg Surveillance · Monday, July 20, 2026
Despite the Fed Chair's strong language on inflation being 'intolerable', there's a possibility that underlying actions might be more cautious. While some hawkish members may push for hikes, if inflation data continues to soften, the Fed might end up with no hikes at all, though the official call remains for two hikes.
“First of all these CPIS and PPI data also helped I think deep inside he wants to talk tough, not talk much, get it all forward guidance and end up not touching it. I'm not too sure he's too keen to hike his Other Hapkish members like Hamak on Friday will continue to help him as well. Is If data continents to come like they did the past week, I think we may end up with no hikes at all. Though I have to respect my Matt Zetti as always, I have to emphasize the official call is two hikes, okay, I.”