July CPI cools on cue, knocking September Fed hike odds down to 42%
July CPI rose 0.1% month over month, with the annual rate easing to 3.4% and core at 2.5%, both in line with forecasts. The tame print plus a soft July jobs report pushed September rate-hike odds down to 42% and lifted stocks. Energy kept cooling, though shelter still drove most of the gain.