Minutes from the Federal Reserve’s last meeting could keep markets on the boil, if there’s much discord among members or it takes a hawkish tone. Traders are looking for comments about inflation in the minutes from the June 18 meeting, after Fed Chair Janet Yellen told a post-meeting press briefing that the pickup in CPI was just “noise.”
“I would be surprised if the consensus agreement was it was just noise. There’s going to be some people who had something to say about it,” said Paul Hickey, co-founder of Bespoke.
Higher inflation could push the Fed to hike rates sooner; the timing of a rate hike is a market obsession. For inflation, the Fed prefers to monitor the PCE price index, which is running behind CPI.