Slow to change Slow to change\images\insights\article\mmdt-weekly-Small.jpg August 11 2023 August 14 2023

Slow to change

Weekly Cash Commentary

Published August 14 2023

Federal Reserve Chair Jerome Powell all but held up a calendar in his post-FOMC meeting in July. The message was that policymakers will have two solid months of economic data to consider before they meet again in mid-September. So far, the reports have been unremarkable—differing only slightly from previous ones. The labor market had only modest growth in July and weekly jobless claims have changed little. Inflation has followed suit, seen last week in the July numbers of two of the most critical measures: the Consumer Price Index (CPI) and the Producer Price Index (PPI).

Headline CPI increased 0.2% from June to July and 3.2% annualized, with core (which strips out volatile food and energy costs) rising 0.2 and 4.7%, respectively. Headline PPI rose 0.3% from June to July and 0.8% annually, with its core reading increasing 0.3% and 2.4%, respectively.

Such scant change will put more emphasis on August’s data, though at this point, the markets overwhelmingly expect the Fed to forego a rate hike in September.

Tags Markets/Economy . Liquidity .

Views are as of the date above and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

Consumer Price Index (CPI): A measure of inflation at the retail level.

Producer Price Index (PPI): A measure of inflation at the wholesale level.

Issued and approved by Federated Investment Counseling