FAP, May CPI will be released on Tuesday. Citigroup strategist Raghav Datla said on Sunday that bond traders may have underestimated the extent of the decline in inflation. He noted that current inflation expectations for the next few years were higher than they were in early 2023, despite tighter financial conditions, lower year-on-year inflation and rising unemployment and jobless claims. As a result, the Fed will announce its policy decision on Wednesday after Citi's strategy team did not believe that the market fully reflected the downside risks to inflation on the eve of the May inflation data. Traders are betting that officials will keep interest rates unchanged at 5 per cent, 5.25 per cent, for the first time in 15 months. However, swap contracts still show that the Fed will raise interest rates by about 24 basis points by July.