The Fed Will Cut Rates Next Week. Thursday’s Consumer Inflation Reading Might Suggest It Shouldn’t.
1. U.S. stagflation risk is rising, reminiscent of the early 1980s. 2. Softer job readings are expected, resetting labor market assessments. 3. CPI inflation could show core price pressures exceeding 3.1%, above Fed's target. 4. Mixed growth prospects complicate Federal Reserve's rate decision ahead of September meeting. 5. Economic indicators hint at potential bear market conditions amidst inflation concerns.