Institution: Data-driven Fed's future monetary policy actions

Mark Dowding, Chief Investment Officer of BlueBay Asset Management, stated in a report that, against the backdrop of the Federal Reserve's intention to cut back on its forward guidance policy, data will ultimately determine the path and timing of future monetary policy actions. He said, "In this context, inflation risk is now largely the main focus of the Federal Open Market Committee, with expectations that next week's core personal consumption expenditure price index data will show a year-on-year increase of 3.4%." Dowding said that another set of data in this series will be released before the Fed's July meeting, and if the data continues to rise, it could be used as a justification for a rate hike in July. "However, this seems unlikely as oil prices have fallen this month against the backdrop of a preliminary peace agreement with Iran."