Fed Rate Hike Prospects Plummet Amid Soft June Inflation Print

The US Federal Reserve's interest rate hike prospects have seen a significant shift following the June inflation data. Prior to this, there was a growing sense that new chair Kevin Warsh might be a hawk, and traders were pricing in a possible rate increase at the next meeting in July or September.

However, after the soft June print, the probability of a July rate rise was slashed from an even bet to around one-in-10. This change suggests that investors are rethinking their expectations for monetary policy tightening.

The implications of this shift could be significant, as it could impact all asset prices globally. A game-changing move by the Fed at its next meeting would likely send shockwaves through financial markets.