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Tame inflation could sway the Fed’s next rate move after July
MarketWatch notes the Fed is focused on the July inflation report, which could follow a surprising decline in U.S. jobs last month.
MarketWatch reports that a surprise drop in U.S. jobs last month is not likely, by itself, to stop the Federal Reserve from raising interest rates soon.
The outlet says the Fed’s decision hinges in part on whether the inflation report for July stays tame, with inflation expected to have cooled for a second straight month.
Taken together, the jobs data and the upcoming inflation readout could shape near term rate expectations, an outcome that matters for broader financial markets and interest rate sensitive positioning.