This week’s highlight will come in the form of the CPI reading. Inflation has captured the attention of many, as it remains stubbornly low despite a historically tight labor market, rising wages, and price pressure from tariffs. The low inflation is a primary talking point for the Federal Reserve and one they will continue to monitor moving forward, while investors are calling for lower interest rates due to the muted inflation.
Based on this week’s market reaction, markets will applaud muted inflation, which should add pressure on the Fed to cuts rates.
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