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Writer's pictureAda Tam Ying Ying

Date 15 Aug 24 (Thu) : U.S. CPI and PPI gives hope for rate cut in Sept FOMC... but what is the flip side to watch out?


U.S. CPI (YoY) : from 3.0% to 2.9%

U.S. CPI (MoM) : from -0.1% to 0.2% U.S. Core CPI (YoY) : from 3.3% to 3.2%

U.S. Core CPI (MoM) : from 0.1% to 0.2%


U.S. PPI (YoY) : from 2.7% to 2.2%

U.S. PPI (MoM) : from 0.2% to 0.1%

U.S. Core PPI (YoY) : from 3.0% to 2.4%

U.S. Core PPI (MoM) : from 0.3% to 0.0%



 

Remarks :

U.S. inflation data weaken, gives hope of rate cutting in September FOMC. However, it also trigger another worries on dollar depreciation, as of now USD/SGD has fallen till 1.32 since early August.


Anyway, market remains exacted over the rate cut more than anything now and the current debate is whether it's a 25bps or 50bps cut. So, let's see what are some pointers to take note if rate cut materialised in September.


One reminder, please take note of U.S Job data like Nonfarm payroll, Initial jobless claims to ensure recession is in check with U.S. economy growth.


Claudia Sahm Warns Fed: Delayed Rate Cuts Could Spur Unnecessary Recession



Gold slips 1% as large rate-cut hopes dim after US CPI data




Dollar softens against euro as inflation data shows cooling



Currency war ahead? Euro gains as US CPI boosts Fed rate cut outlook


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