Macro Insights Weekly - Fed's options

The Fed faces a tough call: sticky inflation argues for hikes, but soft demand, weak investment, muted wage growth, and heavy debt issuance support holding rates steady for now.
Sticky core inflation keeps pressure on the Fed to hike the FFR rate.
Mixed macro data gives support to both hawks and advocates of patience
Consumption and investment softness weaken the case for immediate tightening.
Labour market resilience is fading, with job creation lagging prior cycles.
Despite higher hike odds, our call remains a near-term Fed hold.