Fed Chair Powell reiterates that a strong majority of Fed policymakers see two or more rate rises by the end of this year

Inflation:

• Core PCE likely rose 4.7% Y/Y in May, overall PCE estimated to have risen 3.9% (note: Data released on Friday)
• Repeats that inflation is above target.
• Process of getting inflation to target stil has a long way to go.

Labour market:

• Repeats that the labour market is tight.

Real Estate:

• Some housing market indicators have turned up.
• Housing sector still far below peak.

Financial Sector/Credit:

• Bank stresses that emerge in March may lead to further tightening of credit conditions.
• Economy faces headwinds from higher credit conditions
• Must not take financial system stability for granted
• Banking system strains have eased, deposites have stabilised.

Policy Outlook:

• Will take time of full effects of monpol to be realised.