JP Morgan response to the US June CPI report – soft landing path a “smidgeon” wider

The US CPI report for June came in lower than the consensus expected for both headline and core m/m.

JP Morgan, in a nod to Federal Reserve Chair Powell’s comment about a narrow path to avoiding recession, says:

  • “… the narrow path to a soft landing looks a smidgeon wider
    this morning”


  • “Core CPI is already off 1.7%-points from its high. The
    standard models predict that the next 2-3%-points of disinflation
    will require a significant employment sacrifice, but those models
    missed both the run-up and partial climb down in inflation.”

Goldman Sachs are tipping the July Federal Open Market Committee (FOMC) rate hike to be the final in the cycle:

This article was written by Eamonn Sheridan at Source