Fed Should Hike “in the Near Term” if CPI & PPI this Week Are “Hot”: Fed’s Waller. So at the July Meeting? Treasury Yields Jump

Fed Governor Christopher Waller stated that the Federal Reserve should consider tightening monetary policy in the near term if core inflation data from the Consumer Price Index (Tuesday) and Producer Price Index (Wednesday) show continued elevated readings, citing concerns about repeating the 2021 mistake of waiting too long to hike rates. Core PCE inflation reached 3.4% and core services PCE reached 3.7% as of the article date, both well above the Fed's 2% target, while Treasury yields rose significantly with the 1-year yield climbing 6 basis points to 4.12%.