ISCB - Is The Fed Going To Cut Rates Soon? Guess Who Thinks So
2024-07-15 11:20:00 ET
Summary
- The CPI for June came in lower than expected. Inflation fell 0.1% in June, and for the trailing 12 months it came in at 3.0%. The annual increase for the core CPI rate was the smallest since April 2021.
- While not yet at the Fed’s 2% long-term target, this was enough of a decline to fuel speculation that the Fed now has room to lower the overnight lending rate. Most Wall Street economists now expect that to take place at the Fed’s early-September meeting.
- With the 90%+ bet that we will see an interest rate cut in September, the small-cap Russell 2000 index blasted higher and was up over 6% on the week. Is this a new rotation on which we should take action or just a snapback rally from a long-underperforming consolidation in small-cap stocks?
Glad to have you back. In some respects, this past week in the stock market was monumental on several levels. But first, an important economic update which fueled the history-making week.
Earlier in the week, the all-important CPI (Consumer Price Index) was released for the month of June and came in lower than expected. Inflation fell 0.1% in June, which was lower than the expectations of a flat-to-positive 0.1% number. For the trailing 12 months, the CPI came in at 3.0%....
Is The Fed Going To Cut Rates Soon? Guess Who Thinks So