Lates News

According to Wall Street Journal reporter Nick Timiraos, the market will focus on the month-on-month changes in the July inflation data to be released on Wednesday, as more and more FOMC members indicate that the inflation readings in the coming months will determine whether they believe the prediction that "inflation will fall to 2% over the next two years" remains achievable without further interest rate hikes. However, the new Federal Reserve Chair, Waller, recently expressed skepticism about linking these policy-sensitive predictions to high-frequency data. He previously stated that he does not see much practical value in the Fed's current "data-dependent" policy. Additionally, Nick mentioned that the working group established by Waller seems to have some objectives aimed at helping build a framework to replace the old one. Yet, until the new framework is defined, the old framework appears to still be in operation.