Weekly Market Recap – May 20, 2024

chart_of_the_week 05-20-2024

Falling inflation in 2H23 encouraged a more accommodative tone from Fed officials. In fact, Fed sentiment, as measured by J.P. Morgan’s Fed Hawk-Dove Speech Score, slowly shifted from hawkish toward a more neutral stance in the fourth quarter. However, after a string of hot CPI prints in 1Q24, heightened inflation uncertainty has caused Fed officials to reassert their hawkish tone. Last week’s data provided an important update on inflation dynamics in the second quarter.

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