Fed's Musaelm (2028 voter, Hawk) says without further policy restraint, it is more likely inflation will remain substantially above 2% target 18 months from now
CRUDE WRAP: WTI (X6) SETTLES USD 3.71 LOWER AT USD 92.37/BBL; BRENT (Z6) SETTLES USD 3.05 LOWER AT USD 96.24/BBL
Informed Ukraine source does not expect any breakthroughs yet in regards to the meeting between US President Trump and Ukraine President Zelensky, but attention is paid to energy de-escalation, reports Ukraine media RBC
Fed's Musaelm (2028 voter, Hawk) says without further policy restraint, it is more likely inflation will remain substantially above 2% target 18 months from now
US President Trump will challenge UK PM Burnham over Britain’s defence spending when the pair meet for the first time in New York on Tuesday, reports Telegraph
US President Trump approval falls to 32%, lowest level of his political career, via Ipsos poll; 17% of americans approve handling of cost of living
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- Interest rates likely need to climb further to tame inflation that is both demand- and supply-driven.
- Labor market stable around full employment and not a source of inflation pressure.
- Commodity shock is more than just oil, includes base metals like copper.
- Better for rate hikes to be 'earlier and incremental' rather than 'later and larger'
- Even when stripping out supply-related factors, inflation is still 'too high' at up to 3%
- Business contacts note they are planning on price increases 'closer to 3%'
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