Forex▲ Bullish
US CPI Holds at 3.4% as Expected, Jackson Hole Next
July inflation prints in line with consensus, keeping the Fed on hold for now. Markets now turn to Warsh's speech at the Jackson Hole symposium for clues on September policy.
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US July CPI came in at 3.4% year over year, matching the consensus. The core annual rate also met forecasts. That gave the Federal Reserve little new ammunition for a rate hike in September. Futures pricing dropped to around 35% odds of an increase, down from roughly a coin flip before the data, traders said.
The focus now shifts to the Jackson Hole symposium, running August 27-29. Fed Chair Warsh is expected to speak, though the agenda is not out yet. Warsh has pushed for a shift in forward guidance, so a firm policy signal from his speech is unlikely, analysts said. The symposium's theme this year is 'Financial Innovation: Implications for Payments and Policy'.