The US CPI report for June came in lower than the consensus expected for both headline and core m/m.
JP Morgan, in a nod to Federal Reserve Chair Powell’s comment about a narrow path to avoiding recession, says:
- “… the narrow path to a soft landing looks a smidgeon wider
this morning”
Citing:
- “Core CPI is already off 1.7%-points from its high. The
standard models predict that the next 2-3%-points of disinflation
will require a significant employment sacrifice, but those models
missed both the run-up and partial climb down in inflation.”
Goldman Sachs are tipping the July Federal Open Market Committee (FOMC) rate hike to be the final in the cycle:
