Institution: The Federal Reserve's first rate cut or cautious stance

ChainCatcher news, Facet Chief Investment Officer Tom Graff stated that the CPI basically met expectations. However, the details are slightly more favorable. Almost all of this month's growth came from housing. Since this indicator has a slightly lower weight in the core PCE, it means that the inflation metric favored by the Federal Reserve will be slightly lower than the CPI. If there were any doubts before, this will certainly make the case for a rate cut in September a reality.

However, this does not necessarily increase the view of a 50 basis point rate cut. The Federal Reserve is likely to choose to slow down at the first rate cut before considering larger cuts thereafter.