Will The Fed Pause In September? 5 Economists Break Down The Signals From Falling Inflation In June
Portfolio Pulse from Piero Cingari
US consumer price inflation fell from 4% to 3% YoY in June, marking the twelfth consecutive decline and the lowest since March 2021. This has led to speculation of only one additional rate hike by the Federal Reserve. The US dollar fell to its lowest level since April 2022, with the Invesco DB USD Index Bullish Fund ETF down 0.9%. The stock market rallied, with the SPDR S&P 500 ETF Trust up 1.1% and the Invesco QQQ Trust up 1.6%. Five economists shared their perspectives, with most suggesting a potential pause in rate hikes due to the easing inflation.
July 12, 2023 | 3:42 pm
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POSITIVE IMPACT
The Invesco QQQ Trust rallied 1.6% amid falling inflation and speculation of only one more rate hike by the Federal Reserve.
The ETF tracks the performance of the NASDAQ-100 index. The falling inflation and speculation of only one more rate hike by the Fed have boosted investor sentiment, leading to a rally in the stock market and the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust rallied 1.1% amid falling inflation and speculation of only one more rate hike by the Federal Reserve.
The ETF tracks the performance of the S&P 500 index. The falling inflation and speculation of only one more rate hike by the Fed have boosted investor sentiment, leading to a rally in the stock market and the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF fell 0.9% as the US dollar dropped to its lowest level since April 2022 due to falling inflation.
The ETF tracks the performance of the US dollar. The falling inflation and speculation of only one more rate hike by the Fed have weakened the dollar, leading to a drop in the ETF's value.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100