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Analyst: Tariff Impact on CPI Minimal, Fed Likely to Cut Rates in September
Summary: According to sources, Janney Montgomery Scott's Chief Fixed Income Strategist Guy Lebas stated that July's CPI roughly met expectations and did not pass on too much tariff impact to consumer prices, which is enough to lock in the possibility of a rate cut in September. While there is still a way to go before next ...
According to sources, Janney Montgomery Scott's Chief Fixed Income Strategist Guy Lebas stated that July's CPI roughly met expectations and did not pass on too much tariff impact to consumer prices, which is enough to lock in the possibility of a rate cut in September. While there is still a way to go before next month's meeting, at least in terms of inflation data, the current situation is not worrisome. As an independent and impartial economist, these data can be interpreted in two ways: first, future inflation may rise due to the incomplete manifestation of tariff effects; second, companies are absorbing the tariff impact and it will not pass on to consumer inflation. However, in either case, it is enough to provide the Fed with a rationale for cutting rates in September, provided that next month's data does not show a significant acceleration.
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Link: Analyst: Tariff Impact on CPI Minimal, Fed Likely to Cut Rates in September [Copy]
