Today, we had one of the more talked about producer price reports in recent memory.
That said, the hotter PPI numbers will have little effect on the Fed's most important inflation data point, when it's reported at the end of the month.
June PCE was 2.6%. And with components of CPI and PPI now in, July headline PCE (which is the stated measure for the Fed's 2% inflation target) should be little change from last month (around 2.6%).
Here's what that looks like relative to the past twenty-four months …
So, the media spent the day touting the PPI report and pushing back on Trump's campaign for rate cuts. But the interest rate market continues to price in a September cut, and about a coin flips chance for three by the end of the year.
With that, the annual economic symposium in Jackson Hole is a week away, and has historically served as a platform for central bankers to communicate important signals regarding policy adjustments.
Jerome Powell is on the calendar for Friday, August 22nd, to give a speech titled, "Economic Outlook and Framework Review."