Yet more hot inflation data presented itself for the US on Friday, which surely buries last-gasp hopes of any dovish comments from the Fed at this week’s interest rate decision. Not that a decision really needs to be made, as rates are likely to remain at the 5.25% - 5.5% band for the remainder of the year. But let’s talk about the elephant in the room; hikes. Whilst I do not think another hike is on the radar for the Fed (at least for now), it is surely at least at the back of the Fed’s minds as a contingency plan – should inflation fail to soften. {table} As things stand, Fed fund futures imply a hold this week ... (full story)