CPI Data Impacts September Rate Cut Outlook

The release of today’s Consumer Price Index (CPI) data has prompted Wall Street Journal reporter Nick Timiraos, often referred to as the ‘Fed’s mouthpiece,’ to suggest a shift in the threshold for a rate cut this September. The unexpected surge in CPI figures may impede the possibility of a reduction in interest rates in September. While July’s CPI figures showed a limited degree of inflationary pressure, they might not be sufficient to definitively rule out a rate cut in September.