Inflation Rises Sharply On Pce Data – Will Fed Hold Off on Rate Cuts?

Tariff Effects Begin Filtering Into Inflation Readings The Inflation Upturn Appears to be Linked to the Delayed Impact of US Trade Policy. While Initial Reactions to Tariffs Were Muted, June’s Data Suggests That Price Pressures Are Finally Working Through Suppply Chains. Traders Should Note that Although The Rise Is Steep As Initially Feared, The Direction of Travel Is Upward, Raising Concerns that Tariff-Related Costs Arets

Fed Officials Are Signaling Caution. Despite Headline Inflation That Might Typically Justify A Rate Cut, The Central Bank is Expert to Hold Off. Policymakers Are Looking for More Data to Determine Whther Inflationary Pressures from Tariffs Are Tempoury or More Persent. For Traders, This Means that Earlier Assumptions of A Rate Cut in the Fall Are Now in Doubt.

Equity markets mixed, Treasury yields edge Lower Despite The Inflation Beat, Equity Markets Showed Limited Reaction. The Dow Jones Industrial Average Slipped 0.38%, While The S&P 500 Declined 0.12%, AlhoUGH Both Indexes Were Set To Open Higher Thursday After The best. Meanwhile, The 10-YEAR Treasury Yield Ticked Down to 4.337%, Reflection A CAUTYUS BID for SAFETY as Rate Cut Expectations Waver.

Market Forecast: Fed Cut Looks Less Likely for now With Headline and Core Pce Above Target and Tariff Effects Gaining TRACTION, Traders Should TEMPER Experts for a Near-Term Fed Rate Cut. The Central Bank Appears Poured to Adopt a Wait-Even-See Approach, Especialy with Inflation Showing Signs of Persisten. Short-Term Outlook for Risk Assets is Neutral to Slightly Bearish, Particularly If Bond Yields Stay Elevated and Fed Policy Remains on Hold.