FED NEWS FROM CITIGROUP

From Citigroup economist Bob DiClemente: "The FOMC is gearing
up for a strongly worded anti-inflation message" and officials are "on
the same page once again" with mkt participants. FOMC will have to
balance the statement "between elevated inflation risks and signs that
the much anticipated slowing is under way." Citi looks for 5.5% funds in
Aug in a nod to inflation worries. He says a test of Fed resolve and how
the econ behaves may come from the consumer now that higher gas prices
have been weathered.