CPI Data Could Make or Break Wall Street’s Next Rally
Traders are watching if Tuesday’s June CPI print lets the Fed hold rates steady, but a soft headline probably won’t be enough. Barclays sees headline CPI dropping to 3.8% from 4.2% on lower gas prices, but expects core CPI—excluding food and energy—to rise another 0.26% month over month. Economist Pooja Sriram said core services inflation is in the driver’s seat. That annualizes to roughly 3.2%, still above the Fed’s 2% target. So, cheaper gas alone won’t settle the rate debate.