Inflation is blackmailing the Fed: we are waiting for a rate correction

Inflation is blackmailing the Fed: we are waiting for a rate correction Usually, Fed tries to avoid sudden movements if the market has not managed to take into account all the speculative factors in prices. But today the probability of non-standard decisions is especially high: the Fed can immediately raise the rate by 0.75%.Fresh statistics disappointed: inflation is still a problem for the White House and ordinary Americans. Rate of inflation in the US is accelerating  in May a new high (8.6%) over the past 40 years was recorded. Inflation is driven by many factors: record gas and food prices, China's COVID-19 policy that has disrupted supply chains, and other geopolitical arguments.Prices for transport and tourism services were rising already in April, but analysts expected that a shift in spending from goods to services would help control inflation. However, a tight labour market is driving wage growth and thus competition in consumer spending.Leading Wall Street banks are actively speculating with shocking forecasts of further actions by Fed: the yield on US government bonds has risen sharply, and expectations for the rate level by the end of this year have been raised to 3.0  3.5%.Fed must respond aggressively. Previously, the base scenario was expressed in a guaranteed increase in interest rates by 100 points (50 points in June and July). In the comments of the regulator, even a pause was discussed for a detailed assessment of the state of the economy.Now talking about any pause is inappropriate. Fed will be forced to raise rates (at least!) by 50 bp. at each meeting until the end of the year. If the Fed shows hesitation, then the dollar will again be under pressure, and no amount of Powell's rhetoric will save the situation.Profits to yall!