Mixed Reactions As U.S. Economic Data Sparks Debate Over Fed Rate Cuts

U.S. economic data has produced conflicting reactions, fueling uncertainty about potential interest rate cuts by the Federal Reserve. While recent retail sales data showed robust growth driven by automobile sales and online promotions, consumer confidence unexpectedly declined for the first time since April. This decline was accompanied by rising inflation expectations despite a slight increase in service inflation as indicated by both the Producer Price Index (PPI) and Consumer Price Index (CPI). Analysts are still debating whether the Fed will lower interest rates in September due to these mixed signals.