Montreal Bank: It is hard to imagine that this CPI report will prompt the Fed to cut interest rates before September.

Ian Lyngen, head of U.S. rate strategy at Montreal Bank's Capital Markets Department, said that considering the current tariff environment, it is difficult to imagine that this CPI report will prompt the Fed to cut interest rates before September. The performance of U.S. treasuries after the report was released was flat, which may also indicate this. Under normal circumstances, people might think that this report would kick off discussions about a Fed rate cut. Unfortunately, the new round of tariffs set to take effect on August 1 will temporarily keep the Fed in its current position. Today, there will be several Fed officials speaking, and investors will be closely watching for any hints of recent policy changes - even though the likelihood of such guidance at this point is slim.