🔴 The U.S. inflation index (CPI) for July settled at 2.7%, lower than the expected 2.8%.

⬅️ These numbers place the Federal Reserve in a difficult position between curbing inflation and maintaining economic growth.

⬅️ The likelihood of the Federal Reserve implementing a sharp interest rate cut becomes more complicated.

⬅️ Any significant cut now could send a message that the Federal Reserve is being lenient with inflation, while the numbers indicate renewed price pressures.

⬅️ September will be a critical month for investors and the Federal Reserve alike, as it will determine whether monetary policy remains tight or shifts towards easing.