Welcome to Seeking Alpha's Wall Street Brunch, our Sunday look-ahead to this week's

market-moving events, along with the weekend's top news and analysis.

Hello, today is Sunday, June 8th, and I'm your host, Kim Khan.

Inflution is back on the Fred's radar, with the consumer price index up this week and a solid

May jobs report in the rearview mirror. The May headline CPI is expected to have risen 0.2% on the month,

with the annual rate rising to 2.5%, while the core rate is forecast to have risen 0.3% rising to 2.9%

annually. Wells Fargo economists say the May CPI report will test whether April's potential

signs of tariffs were early glimmers of inflation effects to come or more typical monthly noise.

While May's consumer price index is not expected to deliver a stand-down increase, we look for

inflation to pick up through the second half of the year, they added.

Higher tariff rates lie behind the expected uptrend. We expect some of the tariff costs to be absorbed by our margins, which

remain noticeably higher than before the 2018 trade war. That said, as the higher tariff regime

persists, shielding consumers from the costs is likely to become more challenging. We anticipate

the three-month annualized rate of core goods inflation

to peak around 4 to 5% in early fall, a little lower and later than our previous forecast

published on May 8th ahead of the 90-day pause on reciprocal tariffs on China. T.S. Lombard says,

the Fed is now shoved closer to policy being conflicted by employment and inflation moving in opposite

directions.

Normally, a preemptive move can be justified because employment lags growth and inflation

lags employment. But these are not normal times. Everything Trump has done and is set to do

liens inflationary. Biden's fiscal expansion helped move inflation and real rates higher,

even though hiring rates are low, and tariffs

...