US inflation fears eased in July as consumer prices rose less than expected. The S&P 500 and Nasdaq Composite hit new highs on Tuesday after a tame CPI report, with the Dow Jones Industrial Average also rising. However, former White House economist Jared Bernstein cautioned that the figures may not accurately reflect the true state of inflation.
Goldman Sachs chief economist Jan Hatzius estimated that a major price increase could happen by October, but many traders now expect three rate cuts this year due to the mild inflation numbers. The US consumer price index rose 0.2% seasonally adjusted in July, putting the annual figure at 2.7%, slightly lower than the Dow Jones estimate.
Meanwhile, US President Donald Trump threatened Fed Chair Powell with a “major lawsuit” over management of the Fed’s headquarters renovations. Perplexity AI offered $34.5 billion to buy Google’s browser, citing investors’ backing for the deal.
Source: https://www.cnbc.com/2025/08/13/cnbc-daily-open-will-the-other-shoe-drop-when-it-comes-to-us-inflation.html