Traders Push Back Oil-to-Inflation Transmission Timeline After June 10 CPI, Still Expect 40bp in Rate Hikes

According to Molly Brooks, U.S. rates strategist at TD Securities, following the June 10 CPI release, traders maintain expectations for roughly 40 basis points of rate hikes over the next 12 months. Market pricing for the Federal Reserve remains essentially unchanged. Brooks noted that the market views energy shocks as a question of "when, not if" transmission occurs, with expectations for oil price inflation pass-through shifted further into the future.
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