Inflation data next week may lead to a September rate cut, increasing expectations for a cut.

From Investing.com: 2024-07-05 17:36:02

Next week’s inflation data may lead to a September rate cut, with economists expecting a 0.2% rise in CPI for June. The Fed’s ‘good news’ counter is in full swing with signs of slowing in the labor market, as seen in downward revisions in job gains for April and May. Despite better-than-expected payroll gains in June, rising unemployment rates and slowing wage growth are adding to expectations for a rate cut. This data supports Chairman Powell’s view of a more balanced labor market. Traders are now pricing in a 70% chance of a rate cut in September, up from 60% the previous week. Powell’s upcoming testimony before Congress could be a pivotal moment for signaling a rate cut in September.



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