Key inflation report looms on Thursday as traders grow more confident in Fed rate cut
What did economists predict for June's CPI changes?
Economists surveyed by Dow Jones predicted June's CPI to rise 0.1% from May, and 3.1% from the same month a year before. They also expected the core CPI, which excludes more volatile food and energy prices, to rise 0.2% from May and 3.4% since June last year.
What did Jerome Powell testify about on Capitol Hill?
Federal Reserve Chair Jerome Powell testified on Capitol Hill about the economy, inflation, and the Fed's actions. He expressed concern about holding interest rates too high for too long, potentially jeopardizing economic growth. Powell cited some easing in inflation and emphasized the importance of operational independence for the Fed to do its job.
Which CPI components are expected to be key focus areas?
The key focus areas for the Consumer Price Index (CPI) components are shelter and medical care services. These components are also significant parts of the personal consumption expenditures index, which is the Federal Reserve's preferred inflation measure.