Glenmede: The Fed Has Ample Time to Assess Whether Energy Inflation Is Under Control

TechFlow news, August 11, Glenmede strategists commented on the US July CPI, stating investors are expecting another relatively moderate inflation report, with headline CPI expected to rise 3.4% year-over-year, while core price pressures remain at a manageable level. As US-Iran tensions escalate, oil prices rose further in July, and the energy sector may exert pressure again. However, the market reaction this time was more stable, thanks to active response measures and the release of strategic reserves, which maintained the stability of oil supply. The Federal Reserve has ample time to assess two inflation reports before the next meeting, providing more time to assess whether energy pressures remain under control or begin to expand, a distinction that is likely to influence future policy direction. (Jin10)