END OF DAY REPORT JUNE 29th

HIGHLIGHTS- EQUITIES, FUTURES & OPTIONS

White House Economic Advisor Brainard says there is reason to believe can get near 2% inflation pre-election; sees housing inflation down "considerably" and sees inflation "continually" improving in H2 2023


Heavy bear-flattening after decline in jobless claims and upward GDP revisions



BoE's Tenreyro says her vote to leave bank rate unchanged and the meeting rested on what he latest data implied about the medium term Forward-looking indicators had pointed towards falls in both pay growth and core-goods inflation over the rest of the year. Data could be consistent with a slightly slower decline in domestic inflationary pressures. Tightening already in the pipeline would be sufficient to bring inflation back to, and most likely below, the target. Sharp increase in interest rates at longer horizons more than sufficient to offset the recent data news.



Fed’s Bostic (non-voter, dove) reiterates he doesn’t see additional Fed rate hikes as needed; policy is in place to bring inflation back to 2% target Inflation is in a gradual cooling trend that should continue. Expects Fed can meet inflation goal without causing severe downturn. Not ready to rule out further rate hikes if needed. Does not see Fed rate cuts in 2023 or 2024. Inflation should cool even if Fed leaves current policy in place. Monetary policy has only recently moved into restrictive territory.