Will July Retail Sales Confirm a Soft Landing -- or Fuel Recession Fears?

Barron's20:27 ET · Discovery

How does Wall Street view CPI? The increase in housing inflation will not hinder the trend of interest rate cuts, and traders are betting on a 25 basis point rate cut in September.

Wall Street analysts have indicated that the July CPI data may further pave the way for the Fed to lower interest rates by 25 basis points in September. Next, the Fed will focus on the labor market. If employment weakens, a larger cut of 50 basis points may be needed. Some analysts have said that although housing inflation has ceased its downward trend, it is not a major concern.

wallstreetcn19:28 ET

"New American Union News Agency": The way for interest rate cuts in September has been paved, and the focus is on the scale of interest rate cuts.

Timiraos said that a rate cut is almost inevitable and the focus of the September meeting will shift to whether the rate cut decision is unanimous and whether it will be a 25 or 50 basis point cut. The reason why the size of the rate cut may become a topic of discussion is because the recent US labor market has shown signs of potential weakness. Therefore, even if the inflation data is not as moderate as the Fed expected, the reason for the rate cut in September has become more justifiable. He believes that moderate inflation data may make it more likely for there to be three rate cuts this year.

wallstreetcn19:01 ET

BNP Paribas: PPI and CPI Reports Should Clear the Way to a Rate Cut in September

Seeking Alpha13:03 ET

US inflation has cooled for four consecutive months in July, and employment data has become the "roadblock" to the last interest rate cut by the Federal Reserve.

In July, the inflation rate in the USA has dropped for the fourth consecutive month, which gives the Federal Reserve the possibility to decrease interest rates next month.

Zhitong FinanceAug 14 10:17 ET

Inflation Slipped to 2.9% in July, Lower Than Expected

WSJAug 14 09:42 ET