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Analyst: Premise for Fed Rate Cut in September is Subsequent Reports Not Being Too Poor
Summary: According to Chris Zaccarelli, Chief Investment Officer at North Light Asset Management, traders have been closely watching today's release of the Consumer Price Index report, with the Federal Reserve possibly paying even more attention - internal debates on whether to cut rates immediately are ongoing. Fortunately, this morning's report largely met expectations, with core (excluding ...
According to Chris Zaccarelli, Chief Investment Officer at North Light Asset Management, traders have been closely watching today's release of the Consumer Price Index report, with the Federal Reserve possibly paying even more attention - internal debates on whether to cut rates immediately are ongoing. Fortunately, this morning's report largely met expectations, with core (excluding food and energy) data showing inflation is under control (e.g. monthly increase lower than expected, annual increase in line with the consensus expectation of 2.9%). If inflation does remain under control, the Fed can proceed with rate cuts - possibly as early as September; but if subsequent reports show a different trend, the Fed will have to maintain current policy for a longer period.
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Link: Analyst: Premise for Fed Rate Cut in September is Subsequent Reports Not Being Too Poor [Copy]
