Daily News

Fed Spokesperson: The Fed will release July CPI data, with the core CPI expected to rise by 3.1% year-over-year.

Fed Spokesperson Nick Timiraos stated that July CPI data will be released this week. The core CPI is expected to rise by 0.31%, bringing the annual increase to 3.1%, an increase from 2.9% in June and 2.8% in May. Overall inflation is expected to rise by 0.24%, bringing the annual increase to 2.8%.

The US economy is entering an era of high tariffs and high interest rates, creating quasi-stagflationary pressures. Tariffs raise the cost of imported goods, burdening businesses and consumers, and suppressing aggregate demand.

The Fed's failure to cut interest rates due to inflation concerns has left interest rates high, inhibiting the recovery of interest-sensitive sectors, particularly real estate. This has increased pressure on slowing US economic growth and also faced challenges in the labor market.

Commerzbank analyst Thu Lan Nguyen stated that if unstable and unpredictable US policies discourage foreign investors from purchasing US Treasuries, the US dollar could weaken. She pointed out that foreign investors have been providing capital to the United States, driving its wealth growth, but if they reduce investment due to concerns about lower returns, it may trigger a deleveraging process and be accompanied by a sharp depreciation of the US dollar.