Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
How the ECB Rate Hike Reshapes the Fed's Calculus
In this episode of The Macro Memo, Lucas and Luna unpack the European Central Bank's surprise rate hike on June 11, 2026 — its first since 2023 — and what it means for the Federal Reserve's next move. With US CPI at 4.2 percent and wholesale prices surging 1.1 percent in May, the hosts explore how the Iran conflict is driving energy costs higher on both sides of the Atlantic. Lucas explains why the ECB's move could force the Fed to hold rates steady into 2027, even as markets price in cuts. Luna brings in data on the ten-year breakeven inflation rate dropping to 2.29 percent, a…
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