Inflation is Dead For Now, But Geopolitical Risk Could Bring it Back
The latest CPI report shows inflation easing, with the annual rate at 2.9%, marking the fourth consecutive lighter- than- expected inflation report. This trend, coupled with a soft labor market, increases the likelihood of a Federal Reserve rate cut in September, with futures implying a 100% chance of a cut. As inflation risks fade, market focus shifts to economic health indicators and potential geopolitical risks, particularly in the Middle East. However, the overall market sentiment remains positive, w...