Goldman Sachs: CPI Data Supports Expectation of Fed's 'Insurance' Rate Cut in September
BlockBeats News, August 12th, Alexandra Wilson-Elizondo, Co-Chief Information Officer for Global Multi-Asset Solutions at Goldman Sachs, stated that the July CPI data met expectations, with the year-on-year core inflation rate rising by 3.1%. The Fed is supported by the data, believing that the impact of tariffs on price levels is mostly temporary. Tariffs have not led to significant price increases as businesses have offset cost pressures by reducing inventory and cautiously adjusting prices, mainly because consumers are very price-sensitive. The Fed's policy is highly data-dependent, and with inflation under control and signs of a weakening labor market in the revised employment data, future focus will be more on employment. Overall, this inflation report supports the expectation that the Fed may implement an "insurance" interest rate cut in September, which will be a key driver for the market. (FX678)
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