June CPI Data Supports Market's Overestimation of Fed Rate Hike Expectations

Odaily Planet Daily News: Tony Welch of SignatureFD stated that the market has overestimated the possibility of a Federal Reserve rate hike. After the weak June CPI inflation data, the futures market reflected a lower probability of a rate hike this month, but data from the CME Group shows that at least one rate hike this year is still possible. Welch stated that regardless of fluctuations in fuel prices, inflation is on a downward trend. He noted that currently, there is no wage growth capable of sustaining broad-based inflation across the entire economy in the long term. Welch expects that Federal Reserve Chair Powell will attempt to keep inflation expectations near the Fed's 2% target and use rhetoric to help set and maintain stable inflation expectations.