After Wednesday’s Fed meeting, one bond trader thinks the end of the central bank’s tightening campaign is drawing closer.

“We’re getting closer to the endgame,” said Gregory Faranello, Head of U.S. Rates Strategy at AmeriVet Securities. “As we head through the summer … those high, high inflation prints from last year will start to roll off.”

He noted that June 2022 has marked the peak for inflation, when the consumer price index rose 9.1% from the year-earlier period.

“I think there’s a stronger possibility that this turns out to be the last rate hike. But we’re going to have to wait and see. I don’t think you can fully rule out one more rate hike after this one,” Faranello said.

— Fred Imbert