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Gregory Daco comments that more hawkish communication from the U.S. Federal Reserve does not necessarily indicate an interest rate hike this year, and he does not believe such a move is warranted.
He shares his views on the underlying fundamentals of the economy during a conversation on CNBC, highlighting the current state of policy guidance.
Earlier this month, Gregory Daco reported that U.S. headline CPI inflation reached 4.2% in May, the highest level since April 2023, while core inflation held at 2.9%. In a separate note, he observed that Federal Reserve forward guidance on rates could be reversed as soon as June. Both developments have shaped recent discussions on policy direction.