Rate Cuts on Hold
Fed watches tariffs and inflation closely
This Week’s Market Update: CPI, PPI, and Fed Caution
Happy Friday!
Let’s jump into this week’s market news.
📊 CPI Report – Consumer Price Index
On Tuesday, we got the CPI report for June. While this isn’t the Federal Reserve’s preferred inflation gauge (that would be PCE), it still plays a key role in shaping inflation expectations.
- Headline CPI rose 0.3%, pushing the annual rate from 2.4% to 2.7%.
- Core CPI (excluding food and energy) edged up from 2.8% to 2.9%.
But here’s the thing: much of the CPI increase came from items like lodging, gas, and car insurance—things that the Fed’s interest rate decisions simply don’t influence.
When we strip out inflation components that aren’t impacted by interest rates, the true rate of inflation was up just 0.057%. That’s a pretty tame number.
🏭 PPI Report – Producer Price Index
On Wednesday, we saw the PPI, which measures inflation at the wholesale level. Theoretically, if wholesale prices rise, retail prices follow.
- Month-over-month PPI came in flat at 0.0%.
- A revision from the previous month adjusted that data from +0.1% to +0.3%, but this month’s zero reading shows very little movement.
This suggests we’re not seeing much inflation pressure from producers right now, which may help keep consumer prices steady.
🛑 Why No Fed Action Yet?
So, with relatively low inflation readings, why isn’t the Fed cutting rates?
Because they’re waiting to see how new tariffs will impact inflation. Tariffs can sneak into the supply chain and push up prices, but so far, no major impact has shown up in the data. The Fed is watching closely—and waiting patiently.
🏡 Realtor Update: Winning in a Buyer’s Market
This week we hosted another Winning in a Buyer’s Market event in South Denver at Angelo’s Taverna. It was a packed house and a great time!
We have two more sessions coming up—one in Boulder and one at Capital Grow. If you’re a Realtor, stay tuned and grab a seat while you can.
💬 I’m Available This Weekend
Need a pre-approval? Want to run numbers? I’m around all weekend, 8 AM to 8 PM, 7 days a week.
Just reach out—I’d love to help.
Have an amazing weekend!
— Brian Manning
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Questions? Concerns? Ready to get started with my strategic buyer consultation?
Call me any day of the week, Monday- Sunday to get connected & learn about your options.
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303-500-3839
Brian@BrianManningTeam.com
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