Inflation Cools but Fed Hawks Divided — July on Hold; Will September Bring a Rate Hike?
Weaker US June CPI and PPI have eased July rate-hike fears. But Fed Chair Warsh called single-month data "imperfect indicators" of underlying inflation and stressed zero tolerance for persistent pressure. Hawkish splits persist: Dallas's Logan wants a "modest hike," while Vice Chair Jefferson backs a pause but warns hikes stay possible if inflation stalls. Futures price ~86% odds of a hold on July 29, yet September-hike odds top 50%. The market isn't trading cuts anymore — it's "pause in July, hike in September." Does tech keep benefiting, or is it time to brace for another hike?