Fed Expectations Shift To Growth Data

Softer US inflation eases pressure for hawkish Fed path

The US inflation rate has cooled, reducing pressure on the Federal Reserve to take a more hawkish stance.

Last week’s core CPI was softer than expected, reinforcing the view that US inflation is easing.

The focus now shifts to the S&P Purchasing Managers’ Index data to confirm if growth remains resilient, with a Manufacturing PMI print of around 54.4 expected.