Fed forecasts persistent inflation and likely rate hikes by year-end. Inflation below 3.6% in June at 3.2% YES.

The chances of a rate hike this year have grown, according to futures markets.

Fed forecasts persistent inflation and likely rate hikes by year-end. Inflation below 3.6% in June at 3.2% YES.

PCE inflation rose further in May, reinforcing bets the Fed hikes rates by October as Chair Kevin Warsh keeps policy tight to cool prices.

US Federal Reserve is expected to hold rates steady at its July meeting despite inflation hitting a three-year high. Markets see a possible pause now, but still price in a higher…