U.S. May CPI Hits 4.2% Year-Over-Year, JPMorgan Says Inflation May Have Peaked; Market Bets on Year-End Rate Hike

According to BlockBeats, on June 11, U.S. May consumer price index (CPI) rose 4.2% year-over-year, reaching a three-year high, but JPMorgan Asset Management believes this may mark a cyclical peak in the current inflation cycle. Chief global strategist David Kelly stated the Federal Reserve will likely hold rates steady at its upcoming meeting while monitoring subsequent data.

Core CPI increased 0.2% month-over-month, below market expectations. Traders have fully priced in a June hold, but diverge on year-end policy, with derivatives markets showing rising odds of a rate hike before year-end.