The Fed's View on Inflation

The markets are betting that they're going to be not just a pause at the Fed's meeting in June, says David Frum. A lot of participants in the markets are using Fed fund futures as a hedge in case we had a debt ceiling collapse,. That puts some weight on the Fed having to cut rates if the United States defaulted in June. The other is that there is a feeling in the markets, perhaps, that the Fed is going to see inflation coming down quickly and cut rates.