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The two-day FOMC meeting gets underway in Washington

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  • The meeting got underway at 10:30 am ET as scheduled

The market is pricing just a 4.7% chance of a hike, given the miss on headline CPI. The big question now is: How forcefully will Powell push towards hiking again in July. He can’t pre-commit given the data uncertainty so I think he will come off as dovish. At the same time, the dot plot could offer a strong indication of a hike and a higher-for-longer scenario.

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