🏦🇺🇲July inflation report brings Fed rate cut closer to September, says WSJ's Timiraos

▶️ As Nick Timiraos of the Wall Street Journal noted, the July inflation report suggests that a rate cut by the Fed in September is all but guaranteed.

▶️ He says that this situation can also facilitate consensus among Fed members, avoiding dissent. However, there is still debate over the size of the initial cut, which could be 25 or 50 basis points, depending on upcoming labor market data.

▶️ He notes that an important question for the September meeting will be how many interest rate cuts the Fed plans for the rest of the year. If inflation remains contained, a three-cut scenario could become more likely.