from ET NOW
This Week’s U.S. Inflation Report Could Have Serious Implications for Stocks
A softer-than-expected number could pressure the Fed to signal an interest rate cut is likely in September — or even open the door to one later this month
by Joseph Adinolfi
Market Watch
Like all marquee economic releases, the June consumer price index numbers could have serious ramifications for markets, but investors will be paying especially close attention this month, as the timing of the Federal Reserve’s first interest-rate cut could hang in the balance.
At the very least, a smaller than expected rise in inflation could encourage Fed Chair Jerome Powell to more forcefully prime the market for a rate cut at the Fed’s September meeting, but some believe that a sufficiently weak number could even open the door to a rate cut in a few weeks, something that futures-market traders have dismissed as extremely unlikely, according to CME Group data.
Javier Milei Signs Economic Reforms Into Law
With his initial reforms now in effect, the Argentine president announced the “second phase” of his war against inflation and the deficit.
by Katarina Hall
Reason.com
Argentine President Javier Milei’s economic reforms were signed into law and immediately went into effect on Monday, marking the beginning of an era of privatization and deregulation aimed at revitalizing the country’s struggling economy.
Milei, alongside Chief of Cabinet Guillermo Francos and Minister of Economy Luis Caputo, signed the comprehensive reform package and its accompanying fiscal package this morning.
“Argentina is immersed in a serious and deep economic, financial, fiscal, social, pension, security, defense, tariff, energy, health and social crisis without precedent, which affects all levels of society and the very functioning of the State,” the omnibus bill states. The extensive document is made up of over 200 articles that broadly deregulate and reform these sectors.
Here is a Look at Gold, Upcoming Interest Rate Decision, Plus Another Wave of Inflation
from King World News
Here is a look at gold, upcoming interest rate decision, plus another wave of inflation.
Gold
July 8 (King World News) – Graddhy out of Sweden: Said on March 5th that this chart was saying miners were going to outperform general equities going forward. And, miners did also bottom there and then.
No need for great big picture charting to be complicated.
Bidenflation: California Dad Spends $444 at Trader Joe’s to Feed Six Children
by Amy Furr
Breitbart.com
A man in California spent more than $400 dollars at Trader Joe’s to feed his six children for a week and a half, as Americans struggle to survive in President Joe Biden’s (D) economy.
The father shared a video online that showed a receipt from the store in Westlake Village in Los Angeles County, Fox Business reported Saturday.
“Here’s what it takes to feed six kids in about a week and a half,” the man said in the video. The camera then pans down to show the bottom of the receipt which says the total bill was $444.38:
War and Inflation
by Llewellyn H. Rockwell Jr.
Mises.org
The US central bank, called the Federal Reserve, was created in 1913. No one promoted this institution with the slogan that it would make wars more likely and guarantee that nearly half a million Americans will die in battle in foreign lands, along with millions of foreign soldiers and civilians.
No one pointed out that this institution would permit Americans to fund, without taxes, the destruction of cities abroad and overthrow governments at will. No one said that the central bank would make it possible for the United States to be at large-scale war in one of every four years for a full century. It was never pointed out that this institution would make it possible for the US government to establish a global empire that would make imperial Rome and Britain look benign by comparison.
You can line up 100 professional war historians and political scientists to talk about the 20th century, and not one is likely to mention the role of the Fed in funding US militarism.
Is U.S. Inflation Still Falling?
Market Questions is the FT’s guide to the week ahead
by Kate Duguid, Thomas Hale, and Mary McDougall
FT
Economists are forecasting annual consumer price inflation of 3.1 per cent in June, when the latest figures are published by the Bureau of Labor Statistics on Thursday, according to economists polled by Reuters, down from 3.3 per cent in May.
Alongside Friday’s data showing that the pace of hiring in the US is slowing, the figures could encourage the Fed to deliver its first reduction in borrowing costs sooner rather than later. Markets at present expect two rate cuts this year, with the first arriving in September or November, but Fed officials suggested when they met in June that they expected to cut interest rates only once this year.
I’m an Economist: Here Are My Predictions for Inflation if Trump Wins
by Laura Beck
Yahoo! Finance
If Donald Trump wins a second term, some experts believe it could affect the U.S.’s inflation trajectory — that a second Trump term would mean higher tariffs, deficits and other policies that would increase inflation. While forecasting economic conditions isn’t an exact science, experts can speculate using knowledge about the past and some clues about the future.
A new report from Allianz Research provides insights into how inflation could unfold under a Trump 2.0 presidency. The report shows that while some policies could increase inflation in the short-term, the overall inflation path would be shaped by factors like the Federal Reserve’s actions and broader economic conditions.
Wall Street Week Ahead: Spotlight On Consumer Inflation, Jerome Powell’s Testimony
The Consumer Price Index (CPI) report and Jerome Powell’s testimony may provide cues on Fed’s monetary policy path
by Rajendra Saxena
Mint
Wall Street in the week ahead will see some key economic reports that could influence the stock markets.
Among the economic events, the major focus of investors will be on consumer inflation for June and Federal Reserve chair Jerome Powell’s testimony to the US Congress.
The Consumer Price Index (CPI) report and Powell’s testimony may provide cues on Fed’s monetary policy path.
The week ahead will also see the start of the second quarter earnings season. PepsiCo, Citigroup, JPMorgan Chase, Wells Fargo, and Delta Air Lines are the important ones to watch out for.
Price of Fourth of July Cookout Reaches ‘Record High’ Thanks to Bidenflation
by Hannah Knudsen
Breitbart.com
This Fourth of July is the most expensive on record in terms of the grocery bill, according to data from the American Farm Bureau Federation’s (AFBF) annual marketbasket survey.
The analysis looked at a grocery bill covering a cookout for ten guests, which it estimated to be $71.52. The price is up five percent from 2023 and 30 percent higher than it was five years ago, under former President Donald Trump’s leadership.
“A $7.12 per-person cost represents a record high since AFBF began the survey in 2013. The cookout favorites include cheeseburgers, chicken breasts, pork chops, homemade potato salad, strawberries and ice cream, among other products,” the American Farm Bureau’s analysis reported.
Some Thoughts On America for Her 248th Birthday
by James Hickman
Schiff Sovereign
When the 56 delegates to the Second Continental Congress ratified the Declaration of Independence 248 years ago tomorrow, they were creating much more than a nation. They were giving birth to an idea.
America, at its core, is an idea. And it’s one that ranks as one of the greatest innovations in the history of human civilization, right up there with the wheel, the steam engine, the printing press, and the Internet.
The idea of America wasn’t born in 1776, however. By then it had already evolved over thousands of years.
The ancient Greeks embraced individual liberty, direct democracy, and a respect for the rule of law.