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Cooler June CPI reading reduces Federal Reserve rate hike expectations according to JPMorgan strategist.

Seekingalpha ·
JPM
Cooler June CPI reading reduces Federal Reserve rate hike expectations according to JPMorgan strategist.
  • The latest Consumer Price Index (CPI) report showed a 3.5% year-over-year increase, which was cooler than market expectations due to receding energy prices.
  • JPMorgan Asset Management's Gabriela Santos noted the report provides relief to investors and likely keeps the Federal Reserve on hold for the rest of the year.
  • Strategists see value in short-dated bonds, specifically the 2-year Treasury, as it may have already priced in rate hikes that are now unlikely to occur.

Quotes

“huge relief”— Gabriela Santos, chief market strategist for the Americas at JPMorgan Asset Management

Sources