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A second wave of inflation could dash US rate cut hopes
The US could experience a second wave of inflation, perhaps starting as soon as the next Consumer Price Index (CPI) data to be reported, according to StoneX market strategist Vincent Deluard. Inflation could pick up to a 3.5% annual rate in July due to base effects and a rally in the oil price, now over $80 per barrel from under $70 earlier this year. Such a second wave would echo history. Moreover, identifiable economic shocks could take inflation higher. Traders expecting the Fed not to raise rates this year, and to enact progressive interest cuts next year, could well be disappointed in inflation rises. The Fed ... (full story)