The betting is also that the latest inflation reading for May that will be reported Tuesday, just as the two-day Fed meeting gets underway, will show additional progress in the fight against higher prices.
Those views have helped power a broader stock market rally on Wall Street this month.
In fact, the combination of the narrow stock market rally in 2023, until this month at least, plus the low VIX reading, leads Demmert to expect a 10% stock market correction at some point.
"The stock market at large is in overbought territory and investors are very complacent, which was the case prior to the past three major declines within this 18-month bear market.
Between the June and September meetings, the Fed would get three more inflation and three more payrolls reports.
Persons:
Russell, Scott Ladner, Ladner, James Demmert, that's, Demmert, Jerome Powell's, Paul Ashworth, Ashworth, Jerome Powell, John Wiley, CNBC's Hakyung Kim, Michael Bloom, Jeff Cox
Organizations:
Fed, CME Group, CPI, Horizon Investments, Street Research, Investors, North, Capital Economics, Capital, UBS, Federal, Philadelphia Fed, Adobe, University of Michigan
Locations:
Charlotte , North Carolina, SPX, downtrends, North America