Brace Yourself: Consumer Price Index Data Drops Tonight!
The spotlight falls on the US inflation report tonight with a higher projection reading, and that suggests the potential of having higher costs stemming from the tariff problem. But here is what you should be aware of.
—> Higher inflation would only scale back on the rate cut projection in September and risk the stagflation problem as raised by the Bank of America. Especially with the tariff letter that has not been fully confirmed until August 01, 2025.
So if inflation prints hotter and tariffs are confirmed with a higher rate, the rate cut is very unlikely in this case unless Federal Reserve Chair Powell is kicked out or personally resigns.
Be aware of the stock market, as major bank earnings reports will be released tonight as well. A positive stock market won’t likely to favor on Gold price. All of these fall under the analyst’s inflation projection (higher than the prior figure) scenario.
If by chance, the actual data comes differently, then another scenario will play out.
