"Inflation needs to accelerate noticeably for the Fed to consider raising interest rates, and that doesn’t appear to be in the cards."
“We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks."
Another cut in December is "contingent upon an escalation in trade tensions, further weakness in global growth, and increased geopolitical tensions."
“The consumer is still very sturdy and providing fundamental strength to the overall economy,” an economist says.
The July inflation readings reduce "the chances that the U.S. central bank would cut rates by half a percentage point" in September.
The tepid gain in the PPE points to “relatively subdued inflation, as most of the increase was driven by volatile categories of goods and services.”
The pick-up in underlying inflation in June "argues against aggressive monetary stimulus from the central bank," an economist says.
The "real" economy won't benefit much from a rate reduction, but the Federal Open Market Committee may have other things on its mind.
Deceleration in consumer spending is expected to curb the increase and keep interest rates unchanged.
“The rebound in productivity is restraining labor costs and keeping inflation in check,” an economist says.
The Fed doesn't see "a strong case for moving [rates] in either direction" amid weak inflation and solid economic growth.
“The economy is in a sweet spot for now," with inflation pressures remaining too weak for the Fed to raise interest rates.
