The ‘Fed put’ is back: If Tuesday’s inflation report is bad expect chaos in the markets

Photo of Stephen Miran (Credit: Photo: Tom Williams/CQ Roll Call via Getty Images)

• S&P 500 futures were flat this morning as global markets rested at or near their all-time highs. Investors are optimistic the U.S. Federal Reserve will cut rates in September, in part because of President Trump’s appointment of Stephen Miran to the Fed. If the inflation report tomorrow shows a 0.3% gain or less, a rate cut is expected; a higher reading could derail these hopes and cause market turmoil.

S&P 500 futures were flat this morning after the index closed up 0.78% on Friday, a new all-time high. Japan’s Nikkei 225 reached a record peak too, up 1.85% today. Stocks in Europe broadly held their gains in early trading.