In June the Cleveland Fed predicted that headline inflation would be at 8.7% which of course did not happen. Core inflation was predicted at coming in at 5.6% which of course did not happen. This has been happening for a while where the Cleveland Fed predicts CPI and the actual number comes in a few basis points higher. Currently the Cleveland Fed is predicting headline CPI to come down to 8.8% and Core inflation to rise 1 basis point to 6%. If this pattern of the Cleveland Fed repeatedly underestimating CPI takes place again for July's number, what do you guys think will happen to the market and the Fed's response.
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