The cooling marks the largest monthly drop in US inflation since April 2020, yet Fed Chair Kevin Warsh reaffirmed this week that the central bank has no tolerance for elevated prices, language calibrated to May's peak rather than June's reversal. The Bank of Canada struck a similarly hawkish tone the same week, citing Middle East energy costs even as Canada's core inflation stayed near target. Futures markets price only about a 10 per cent chance of a July Fed hike, suggesting traders aren't taking the rhetoric at face value.
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