The probability of a rate cut in September remains above 90%, but it did recede after the federal government said July wholesale prices rose faster than Wall Street expected. Weekly jobless claims data suggest the labor market remains stable. And earnings continue to generally support the long-term trend despite seasonal headwinds.
In between Tuesday's cool Consumer Price Index (CPI) print and Thursday's warm Producer Price Index (PPI) reading was Treasury Secretary Scott Bessent, who on Wednesday called for a 50 basis point cut (0.50%) at the next Fed meeting.
