Agency: Short-term risks of US CPI data are still on the upside

Odaily News Anthony Willis, senior economist at Columbia Threadneedle Investments, pointed out that although the inflation situation in the United States is relatively mild, the current level is still significantly higher than the Feds 2% target, and short-term risks are still inclined to the upside. He said: The current data will keep the Fed in a wait-and-see attitude during the release of the July and August CPI data until the next interest rate meeting on September 17. By then, the Fed should be able to more clearly assess the transmission effect of tariffs on inflation and obtain more supporting data on the weakness of the labor market. Willis believes that inflation is likely to move towards 3%, but given the dual mandate, the Fed may still find it necessary to cut interest rates later this year. (Jinshi)