The Fed's Comfort With a 25 Basis Point Hike

There's very little on the economic calendar that is really going to call into question whether or not the Fed is going to be comfortable delivering that 25 basis point hike. The NFP print which was solid and the CPI report that yes, showed progress in terms of bringing core inflation lower but at 5.6% core CPI on a year over year basis is still far too high for the Fed's comfort. When we look historically the Fed tends to spend an average of seven months at terminal. If May is the last rate hike that means December would be an average stay at terminal.