Bloomberg Surveillance · Wednesday, July 1, 2026
Victoria Fanadis highlights ongoing inflation concerns, particularly in core goods and services, which she believes the Federal Reserve is closely watching. Despite potential decreases in gas prices, she points to sticky inflation in core components, like 'supercore' inflation rising to 3.9% annually, suggesting a hawkish Fed stance that the market may be overlooking.
“Look, before we had the war start earlier in the year, inflation was already getting sticky, and people were trying to look and see how much is that actually flowing down into the core components of what we're having, core goods and core services. That was already happening, And I think that's the reason the FED is looking and maybe having still of a more hawkish few.”
“Well, that's up to three point nine percent, and on a three month average you're actually moving up on an annual basis close to five percent there.”
“So I think there's a lot of concerns with what's flowing down into the core components of our of our economy. That's what the Fed's going to be watching, and that's why they're remaining on hold and having that hawkish tilt that the market seems to be ignoring right now.”