On June 30, Federal Reserve Chairman Jerome Powell emphasized the connection between tariffs and inflation.
Discussion on Tariffs and Their Impact
Throughout his meetings, Powell mentioned the term ‘tariffs’ nearly 200 times, highlighting their significance for the Federal Reserve.
U.S. Inflation Data
Major banks and analytical firms projected a slight increase in inflation for July. Today's figures were revealed as follows:
* U.S. CPI Announced: 2.7% (Expectation: 2.8% Previous: 2.7%) * U.S. Core CPI Announced: 3.1% (Expectation: 3% Previous: 2.9%)
The monthly Core PPI rose by 0.3%, aligning with expectations, while headline inflation grew by 0.2%.
Future of Interest Rates
For the Federal Reserve to initiate interest rate cuts, the impact of tariffs on inflation needs to remain limited. Although more members of the Federal Reserve lean towards interest rate cuts, achieving the necessary consensus of seven members remains elusive, with optimists currently counting only five votes.
Inflation data and discussions on tariffs continue to be key factors that may significantly influence future decisions by the Federal Reserve.
