Friday’s US inflation report shows whether interest rate cuts are a good idea

The US Personal Consumption Expense Price Index for August will be released on Friday. The Federal Reserve hopes the report shows that headline inflation is in line at 2.8% per year or below economists’ forecasts. Higher, investors may start to worry that last week’s Fed quarterly cuts were premature and that inflation could allow the claws to be submerged into the economy again.

Certainly, the profit 10 years and 30 years Treasurys rose following interest rate cuts as they tend to follow the direction in which interest rates move. Of course, there are other factors that affect yields, such as the level of government debt and fiscal policy. Therefore, the move by Treasurys could suggest that the bond market was not convinced that the current economic situation in the US would justify the reduction.

However, the stock market seemed to have dispelled these concerns. Friday, S&P 500 and Dow Jones Industrial Average Closed with another record. Additionally, all three major US indexes had strong shows the week. Nasdaq Composite 2.2% climbing.

Hindsight makes decisions clear. It gives the power to glove with “I told you so,” or gives one person the embarrassment to keep waking up with a finger at 2am, that’s that for the Fed, hindsight is 2.8%/2.8%.

Trump and XI will talk about Tiktok’s contract on Friday. The US and China said progress was made despite not reaching an agreement. The White House on Saturday added that the US will mostly “control” the app. On Sunday, Trump said Murdox was likely to be involved in the deal.

US H-1B visa price of $100,000 per year. Trump announced plans on Friday to charge a large fee on his pass. H-1B visas are issued primarily to foreign workers in specialized fields, with major high-tech companies rushing to manage fallout.

South Korea could face a crisis due to US investment. That’s true, according to President Lee Jae Myung, who told Reuters on Friday that $350 billion in the US investment (part of the country’s trade agreement) could shake South Korea’s economy without currency exchange.

US stocks notched in victory week. All major US indexes recorded strong profits last week. On Friday, the S&P 500 and Dow Jones Industrial Arage hit new highs. Europe’s Stoxx 600 The index lost 0.16%.

(Pro) Check out the Fed’s priority inflation gauge. The Personal Consumption Expense Price Index will be released on Friday. If prices indicate a faster increase than expected, the market rate-cut mood could quickly become a turn.