The WSJ Fedwatcher Nick Timiraos is out with his take on today’s CPI and he says:
September rate cut from the Fed as close to a lock as these things getThis report makes it easier at the margin to avoid dissents on the first cutTo get 50 bps, you’d probably need to see something bad in the labor marketIntrigue at Sept FOMC will be the dot plot and how many cuts it showsMore mild inflation readings could make three cuts as the baseline more likely
The Fed funds futures market at the moment is pricing in a 41% chance of 50 bps and 59% chance of 25 bps.
This article was written by Adam Button at www.forexlive.com.
