Inflation data gives the Fed leeway to cut, at last: Morning Brief
by Hamza Shaban
Yahoo! Finance
The latest batch of inflation data offered the Fed a brightly illuminated, fog-free runway for an ambitious soft landing.
When enough time goes by, economic data that once constrained policymakers now gives them leeway. If central bankers were on the lookout for “more good data” before they hit the stimulus switch, they likely found it on Wednesday as the reading for CPI broke below 3%, the lowest annual figure since spring 2021.
“We see the signal from this report as reinforcing the Fed’s bias to cut, and we expect the first cut to come in September,” wrote Bank of America Global Research economists in a note on Wednesday.