Institution: U.S. CPI Data Short-Term Risk Still Skewed to the Upside
BlockBeats News, July 22nd, Senior Economist at Columbia Threadneedle Investments, Anthony Willis, pointed out that although the US inflation situation is relatively mild, the current level is still significantly above the Fed's 2% target, and short-term risks still lean towards the upside. He stated, "The current data will keep the Fed in a 'wait-and-see' mode during the release of the July and August CPI data, until the next interest rate meeting on September 17th." By then, the Fed should be able to more clearly assess the transmission effects of tariffs on inflation and obtain more evidence of weakness in the labor market. Willis believes that inflation is likely to move towards 3%, but considering the dual mandate, the Fed may still consider it necessary to cut interest rates later this year. (FX678)
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