Rate expectations remain elevated among consumers – Wells Fargo

Share: The University of Michigan’s Consumer Confidence data for August offered little change. Analysts at Wells Fargo point out that consumers anticipate prices to decline overall, despite their expectations of rising interest rates. Key quotes:  “Consumers are becoming more convinced that inflation is cooling. Whether or not they fully understand the Federal Reserve’s

US CPI inflation to shape Federal Reserve expectations

Share: Consumer Price Index in the US is forecast to rise 3.3% YoY in July, up from the 3% increase recorded in June. Core CPI inflation is expected to hold steady at 4.8% YoY in July. US CPI inflation report could significantly impact the US Dollar’s valuation by altering the Fed’s rate outlook.

Will the Fed move interest rate expectations for the rest of the year?

Share: Federal Reserve is widely expected to raise its policy rate by 25 bps to 5.25-5.50%. Fed has been struggling to convince markets that they will raise rates at least twice more this year. US Dollar valuation could be significantly impacted by Chairman Powell’s comments. The Federal Reserve (Fed) is expected to raise