TREE NEWS reports: DBS analyst Philip Wee said Fed’s John Williams supports another rate hike before end-2026 but declined to endorse market pricing for further tightening in 2027. Williams reiterated the Fed remains data-dependent, not reliant on any single data point, with policy guided by the inflation path over the next one to two years. Today’s CPI report is expected to show core inflation slowing to 0.2% from 0.3%.
DBS: Core CPI May Slow Further, Dollar Rally Faces Test
The significance here is the gap between official guidance and market pricing: Williams backs one more hike before end-2026 but won't validate 2027 tightening, leaving the dollar's rally resting on data rather than a clear policy path. That matters for rate-sensitive crypto and RWA positioning, where the inflation trajectory over the next one to two years, not any single print, is the stated anchor. Whether core inflation actually moderates and whether markets keep pricing beyond the Fed's comfort are the open questions.
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