US Inflation Finally Relents. September Fed Cut All But Assured
Jerome Powell and his colleagues had reason to celebrate on Thursday.
US inflation came in below estimates in crucial government data covering June. It was the third benign read on CPI in a row and, more importantly, the second consecutive downside surprise.
The core gauge rose just 0.1% in June from the prior month, the BLS said. The unrounded print was 0.065%, the lowest since January of 2021. Consensus expected 0.2%.
On a YoY basis, core inflation ran 3.3% in June, still nowhere near tar
But but but what if you want both rate cuts and inflation assisted sales growth tailwind?
Are stocks not priced for both the having and the eating of the cake?
Score one for breadth
Interesting initial reaction – cyclical, small, rate sensitive up; tech and Mega down.