The job print that makes cutting more likely.
The Fed will shift its focus to containing upside inflation risks now that the
labor market appears back on track. The FOMC could well feel compelled to remove
the easing bias from its next post-meeting statement in June, which would
suggest the hawks are gaining the upper hand on the committee for the time
being.
Strong data and inflation have likely put paid to any easing in the foreseeable
future, though this could change depending on how energy prices and the
situation develop in the Middle East.
