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July CPI Fluctuations Do Not Reduce Fed's Chance of a Rate Cut in Q3

Công LuậnCông Luận19/11/2024


The US Consumer Price Index (CPI) report is expected to increase slightly in July, which will impact the US Federal Reserve's (Fed) interest rate cut policy in September.

Compared to the end of June, the headline CPI and core CPI (excluding volatile food and energy prices) are forecast to increase by 0.2%. This increase has been predicted in many reports by financial institutions.

July CPI volatility does not reduce the possibility of Fed rate cut in Q3 figure 1

The slight increase in CPI in July is expected to have little impact on the Fed's decision to lower interest rates in September. (Photo TL)

In addition, the pressure on the USD exchange rate has cooled down in recent months, further strengthening investors' confidence that the Fed will cut interest rates.

Also related to the Fed's policies, the July employment report in the US showed that the scale of recruitment by businesses is decreasing significantly. The unemployment rate has also entered the fourth consecutive month of increase.

Economists at Bloomberg Economics are positive about the CPI in July, with the core CPI continuing to decline year-on-year. Inflation cooled and stock markets may rebound after this news.

Positive information from the US stock market and the possibility of the Fed cutting interest rates in September are considered positive information that can help the stock markets of many countries recover, including Vietnam.

Last week, VN-Index had shockingly decreasing sessions, causing the number of increasing sessions to account for 3/5 trading sessions, but at the end of the week on August 9, VN-Index still decreased by 13 points, reaching 1,223 points. Average liquidity increased by 6%, reaching an average of 17,000 billion VND/session.



Source: https://www.congluan.vn/bien-dong-cpi-thang-7-khong-lam-giam-kha-nang-fed-ha-lai-suat-trong-quy-3-post307345.html

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