July CPI volatility does not reduce the possibility of Fed rate cut in Q3

The US Consumer Price Index (CPI) report is expected to increase slightly in July, which will impact the US Federal Reserve's (Fed) interest rate cut policy next September.

Compared to the end of June, the headline CPI and core CPI (excluding volatile food and energy prices) are forecast to increase by 0.2%. This increase has been predicted in many reports of financial institutions.

The slight increase in CPI in July is expected to have little impact on the Fed's decision to lower interest rates in September. (Photo TL)

In addition, the cooling pressure on the USD exchange rate in recent months is a sign of strengthening investors' confidence that the Fed will cut interest rates.

Also related to the Fed's policies, the July employment report in the US showed that the scale of recruitment by businesses is decreasing significantly. The unemployment rate also entered the fourth consecutive month of increase.

Economists at Bloomberg Economics are positive about the CPI in July. Core CPI continued to decline compared to the same period last year. Inflation cooled down and stock markets may bounce back after this news.

Positive information from the US stock market and the possibility of the Fed cutting interest rates in September are considered positive information that can help the stock markets of many countries recover, including Vietnam.

Last week, VN-Index had shockingly declining sessions, causing the number of increasing sessions to account for 3/5 trading sessions, but at the end of the week on August 9, VN-Index still decreased by 13 points, reaching 1,223 points. Average liquidity increased by 6%, reaching an average of 17,000 billion VND/session.

Source: https://www.congluan.vn/bien-dong-cpi-thang-7-khong-lam-giam-kha-nang-fed-ha-lai-suat-trong-quy-3-post307345.html