Whoever the White House pick might be to fill the vacant seat on the Board of Governors at the US Federal Reserve is not known yet, but the ever-bulls perceive more sway on the committee. Wishful expositions from the Administration would have, until a place on the board became available, been greeted with zero reaction, but not now.
The relentless march in stocks continues, as the CME FedWatch tool now indicates a 94% probability of a September cut in US lending rates, even without further undue pressure on the Fed chair. The latest nudge came from July inflation data, which showed headline consumer prices rising by 2.7%, lower than expected.
During the last seven whirlwind months, every week has felt pivotal and relevant, and the current one is no exception. Investors will no doubt stay glued to their screens at 13:30 UK time when the US inflation figures are released. A slight uptick is expected in both the headline and core numbers. They will be used to gauge the impact of US tariffs. Anything above the 2.8% and 3% forecasts will likely trigger a wave of disappointment.
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