White House Press Secretary Karine Jean-Pierre said on Monday (11th) that everyone should prepare for the data to be released on Wednesday, and the US consumer price index (CPI) data in June is expected to be very high.
Economists widely predict that the U.S. CPI rose 8.8% in June, a 40-year high following 8.6% in May, and the data may strengthen the Fed’s hawkish stance, raising interest rates by 3 yards at the end of this month’s FOMC meeting . Currently, federal funds futures traders see a more than 90% chance of a 3-yard rate hike in July, according to CME’s FedWatch tool, and the Fed is likely to view the still-high CPI data as aggressive tightening to calm it down reasons for inflation.
Champier on Monday played down the significance of the CPI data, noting that gas and food prices continue to be heavily affected by the war in Ukraine, the data released on Wednesday will be a retrospective, June CPI data is outdated because of energy prices this month It fell sharply and is expected to fall further.
This is not the first time that the White House has taken precautions once morest the CPI data. Before the release of the CPI data in March and May, the White House has continuously predicted that the CPI data will be higher than expected, calling on the market to prepare psychologically and eliminate the public’s concern regarding inflation. Topping predictions.
The Federal Reserve and the Biden administration are struggling to deal with the worst inflation crisis in 40 years. U.S. President Biden is considering canceling some tariffs on Chinese goods, but has not yet decided whether to do so, U.S. Commerce Secretary Gina Raimondo said. Marie Raimondo) pointed out that Biden is clear regarding what effect the removal of tariffs will bring and what effect it will not bring, but it will reduce the burden on American consumers to buy daily household products.
