Previous Trading Days Events 11.07.2024

The U.S. consumer prices fell for the first time in four years in June drawing the Federal Reserve another step closer to cutting interest rates in September. The lowerthanexpected CPI inflation reading helped boost confidence among officials at the U.S. central bank that inflation is cooling after surging in the first quarter.

Barring rogue price data in July, the Fed has a checkered flag to reduce rates in September, said Brian Bethune, an economics professor at Boston College. This guidance will be solidified at the July meeting.

The CPI dipped 0.1 last month, the first drop since May 2020, after being unchanged in May. The CPI was weighed down by a 3.8 decline in gasoline prices, which followed a 3.6 decrease in May.

In the 12 months through June, the CPI climbed 3.0, the smallest gain since June 2023. That followed a 3.3 advance in May. The annual increase in consumer prices has slowed from a peak of 9.1 in June 2022. 

Fed Chair Jerome Powell has acknowledged the improving trend in price pressures but told lawmakers this week he was not yet ready to declare inflation had been beaten and that more good data would strengthen the case for rate cuts.

Initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 222,000 for the week ended July 6, the lowest level since late May.

There is light at the end of the tunnel finally after the central banks long battle with inflation and interest rate cuts,…