Institution: The market may underestimate the possibility of US interest rate hikes

Christoph Schon of SimCorp said the market may be underestimating the possibility of a rate hike by the Fed, Golden Finance reported. His view is that in order to achieve the 2.6% core PCE inflation rate that the Fed projected in March by the end of this year, the indicator will no longer have an unexpected rise. He said that if inflation continues to surprise above average, I don't know how this goal can be achieved again. The Fed will update its economic forecasts in June, but based on the current outlook and past data, it can only be "based on very optimistic assumptions to rule out the possibility of one or more rate hikes."