July inflation data is a key variable that affects Fed policy

On 11 August, economists said that the mixed July employment report released last week had raised the importance of inflation data. LPL Financial Chief Economist Jeffrey Roch said that the Fed ' s interest rate hike would depend on how long inflation lasted. As the labour market slows, inflation may become a key swing factor for the Fed. Increased uncertainty about inflation prospects may support an increase this year, but it is likely that it will not increase. The Spearhead Group analyst, Hickling, said that the July employment report, combined with the improvement in inflation that he expected, would enhance the Fed ' s reasons for inaction before the end of the year. The Fed ' s focus is expected to begin to shift to a balance between labour market and inflation data, while inflation was the top priority six weeks ago. In the light of recent data releases, confidence in the Federal Reserve to maintain interest rates during the year has further increased. Kim Xian