Now Reading: US retail sales slump dims Fed rate hike bets for September
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US retail sales slump dims Fed rate hike bets for September
The probability of the US Federal Reserve raising interest rates in September has fallen to 30.6%, according to the CME FedWatch tool, after retail sales recorded their first decline in 14 months.…
The Story in Brief
The probability of the US Federal Reserve raising interest rates in September has fallen to 30.6%, according to the CME FedWatch tool, after retail sales recorded their first decline in 14 months. Over 69% of the market now expects the central bank to hold rates steady at its next meeting. The weak sales data has dimmed bets that the Fed would tighten policy further to curb inflation.
The Indian Opinion
Markets are quick to read a single month's retail sales dip as a pivot signal, but the Fed has repeatedly said it needs sustained evidence that inflation is cooling. One weak sales print does not reverse 14 months of consumer strength. The real test will be the core PCE data due later this month. If that remains sticky, rate hike chatter will return.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
