U.S. June CPI fell 0.4%, likely cooling move toward Fed rate hikes
This morning's report could go a long way toward determining whether the Federal Reserve raises interest rates at its late-July meeting.
Source: CoinDesk
―
DW NOTE
The Fed's policy rate sits more than 120 basis points below headline inflation and 230 below PPI. June's 0.4% CPI decline — driven entirely by energy and food volatility, not structural disinflation — changes nothing about that arithmetic. Waller was posturing for a hike he knew wouldn't come. The strait is still closed, crude jumped 14% this week, and core PCE is running at 3.6%. One soft print doesn't erase the fact that real rates are deeply negative and the Fed is financing a deficit with printed money.