Powell says tariff-driven inflation is a big problem for the Fed.
Federal Reserve Chairman Jerome Powell said the US Central Bank is still struggling to determine the impact of tariffs on consumer prices.
Bloomberg – Politics
US stock futures are mixed as investors await major inflation reports before the opening bell.
According to a Reuters Economist poll, the consumer price index in July is expected to rise by 2.8% per year from 2.7% in June. Investors are looking to see if President Donald Trump’s tariffs on imports are being converted to higher prices. The June CPI report suggests that tariffs are increasing prices for some products.
July inflation data will help you determine whether the Federal Reserve will immediately cut interest rates.
After lower than expected monthly employment growth, the market is actively priced for interest rate cuts. The CME FedWatch tool, which tracks the odds that markets move rates at each Fed policy meeting, shows that fees will be reduced by more than 84.5% at the next meeting in September.
At 6:20am ET, futures linked to the Blue Chip Dow added 0.05%, while Broad S&P 500 futures fell -0.21%, while the high-tech Nasdaq futures slipped -0.01%.
Fed Watch
Trump said he has appointed Heritage Foundation chief economist Eji Antoni as the Bureau of Labor Statistics’ Committee on behalf of Erica Mantelfer, whom Trump fired on August 1.
The Senate must confirm him.
Corporate News
- Seranese surpassed its second-quarter estimates but warned of a slowdown later this year. It issued third quarter earnings per share, below Wall Street’s forecast.
- Sinclair said it is checking the options, and as a result, it could result in a venture business merger or spin-off.
- Intel CEO Lip-Bu Tan met with Trump at the White House. A few days after he resigned Tan, Trump calls him a success.
(This story has been updated with new information.)
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.
