Oksana Koneva

Liz Thomas: Fed surveys show inflation pressures intensifying in manufacturing and services

Liz Thomas: Fed surveys show inflation pressures intensifying in manufacturing and services
Fed surveys show rising inflation risk

Liz Thomas highlights that regional Federal Reserve surveys are pointing to growing inflationary pressures in both manufacturing and services sectors.

She suggests that with policy tightening already underway, the Federal Reserve is likely to continue raising rates until inflation trends reverse or a significant economic disruption occurs.

Thomas previously reported that markets are pricing in four additional 25 basis point rate hikes through 2027, with expectations leaning toward multiple increases in borrowing costs, according to her analysis of rate hike distribution here. In an earlier note, she observed that while dollar positions remain bullish, USD strength has lagged prior peaks and the DXY index could fall to 96 if sentiment changes here. These insights provide further context for her current comments on inflation and monetary policy.

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