“Everything Is In Play” – Stocks Sink After Fed’s Bostic Cites “Concerning” CPI

Atlanta Fed President Raphael Bostic said “everything is in play” for policy action after data showed that US inflation accelerated again to a fresh four-decade high last month.

“The top-line number is a source of concern,” Bostic told reporters Wednesday during a visit to St. Petersburg, Florida.

“Everything is in play.”

Asked if that included by raising rates by a full percentage point, he replied:

“it would mean everything.”

That remark – which should not be a surprise at all given the STIR market had already gone there, sent stocks lower…

The STIR market has already priced in a 60% chance of a 100bps rate hike in July…

And then the STIR market is pricing in dramatic rate-cuts as The Fed bails the economy out again as the yield curve (2s30s) plunges into inversion…

Bostic just poured cold water all over the WSJ’s earlier article.