Dallas Fed Economist Dolmas: No sign of slower inflation

“US inflation data show little sign of slowing from a torrid pace in May, with no immediate relief from Fed tightening for key core services components like shelter and dining out costs,” MNI reports, citing comments from Federal Reserve Bank of Dallas economist Jim Dolmas.

Additional quotes

"There's nothing I see in the data that makes me optimistic that things are starting to moderate.”

"There are developments outside of the inflation data where we see markets starting to cool off a little bit -- like commodities prices going down -- so there are positive signs, but I'm not seeing a reflection of that moderation as yet."

But there's room for price growth to accelerate even as the Fed hikes interest rates briskly.”

"Housing activity cooled down a lot but prices so far less so.”

"It's a slow process and will take a while to filter through to rents and OER."

As for wages, "we're seeing tiny evidence of cooling -- job openings came down a little bit -- but the labor market still looks really tight. That's also something that's not going to shift on a dime.”

"If long-run expectations go materially higher, then that would start to be worrisome. So far they haven't."

"Short-run expectations have gone up much more than the long-run, and in some sense, that's a confirmation of Fed credibility."

Market reaction

The US dollar is showing little to no impact from the above comments, as it is currently trading at 107.38, up 0.35% on the day.