Published on 17 Aug 2023 on Insider Monkey via Yahoo Finance
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Investors were processing inflation report on August 10 to find clues on the Federal Reserve’s possible moves. CPI’s growth in July was identical to that of June’s. Investors are hopeful that cooling inflation could cause the Federal Reserve to pause its rate hikes. However, not everyone is hopeful. On August 16, meeting minutes from the Fed's latest session showed that the central bank is ready to continue its hawkish stance if inflation does not come down to its targeted levels.
In July, JPMorgan published its mid-year outlook report in which it said that inflation is not expected to come to the levels the Federal Reserve is targeting since the report said “inflation psychology” has changed and supply chain damages that started the inflation storm was more lasting than expected. JPMorgan also said in its report that it expects a mild recession in the second half of 2024. It also believes that in 2024 unemployment could reach the levels where the Federal Reserve could begin easing its monetary policies. However, before that, the bank is seeing a lot of pain.