US CPI is finally below 3% for the first time in three years. It's time to worry about other things.
Risks of housing inflation remain, signs of soaring oil prices may bring huge impact, and Fumio Kishida's withdrawal from the election exacerbates economic uncertainty.
US Inflation Eases for Fourth Straight Month
"Anti-inflation task completed"! Experts call for the Fed to cut interest rates: rental normalization has begun.
Economists say a key indicator shows that prices are returning to normal levels.
Fed committee member 'loosens lips': 'holds an open attitude' towards rate cut in September, can't risk relaxing policy too late
FOMC voter and President of Atlanta Federal Reserve, Bostic, stated that action must be taken as soon as possible considering the continuing cooling of the labor market and the lagging of central bank policy. It is worth noting that just the day before this statement, Bostic reaffirmed his position of rate cuts at the end of the year.
Will July Retail Sales Confirm a Soft Landing -- or Fuel Recession Fears?
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.
"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.
BNP Paribas: PPI and CPI Reports Should Clear the Way to a Rate Cut in September
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.
Inflation Slipped to 2.9% in July, Lower Than Expected
Express News | Futures Show 56.5% Chance of 25 BP Fed Rate Cut in September, 43.5% Chance of 50 BP Cut
Here's the Breakdown for US July CPI, in One Chart
Wells Fargo Strategist Says Investors May Face 1995 Rerun Once Fed Cuts Rates
US Morning News Call | All Eyes on CPI as Data to Show Another Modest Increase, Cementing Fed Cut
Morgan Stanley's Wilson on Stocks, Fed, Inflation
Mohamed El-Erian Argues Fed Missed July Rate Cut Chance, Cautions Against Expecting A 200 Basis Point Slash: 'That Would Be Too Much'
Confident in the weakened inflation! US stocks and bonds rise together, welcoming tonight's US CPI.
Analysis believes that the July PPI data in USA poses "no threat" to interest rate cuts. The momentum of the Fed's September rate cut is very clear, and if this data continues, the Fed will have enough room to further reduce interest rates this year.
Goldman Sachs: The US CPI in July is of great concern, but more sensitive to retail sales and jobless claims data this week.
Goldman Sachs Senior Market Consultant Dom Wilson said on Tuesday that investors are preparing for the release of US CPI data for July on Wednesday, but as concerns about economic growth intensify, investors will also remain sensitive to other data this week.
This year, Federal Reserve voting members sent cautious signals, emphasizing a desire to ensure that they will not be forced to raise interest rates after starting to cut them.
Although the recent US labor market has shown a clear downward trend, there are many signs of weakness in the economy and inflation has also continued to cool as expected. However, like other Fed policymakers, Bostic expressed caution about the next steps and hopes to avoid cutting interest rates too early and causing a sharp turn in interest rate policy.
July CPI in Focus but Keep Watch on Retail Sales as Growth Risks Stalk Markets: Goldman