The data did not discourage the market from their expectations of a September rate cut. Stocks moved higher. Both the S&P and the NASDAQ indices traded to new all-time highs and closed at new record levels. The Russell 2000 rose by nearly 3%. A snapshot of the closing levels shows:
Dow industrial average up 1.10%S&P index up 1.13%NASDAQ index up 1.39% Russell 2000 up 2.99%2-year yield 3.732%, -2.1 basis points5 year yield 3.820%, -1.0 basis points10 year yield 4.288%, +1.6 basis points30 year yield 4.876%, +3.6 basis points
Treasury Secretary Bessent spoke later the day on topics. When asked about Fed nominee Miran, he said that he hopes the will be confirmed by the Senate for a Federal Reserve seat before the September meeting and urged the Fed to consider a 50 basis point rate cut next month. He noted that Trump is casting a wide net for the Fed chair, and keeping an open mind for the Fed governor opening. Bessent also said he expects to meet with Chinese officials again in the next two to three months, adding that Chinese tariffs will remain in place until there is sustained progress—potentially months or even a year— and also on reducing fentanyl flows.
Richmond Fed Pres. Barkin said the balance between inflation and unemployment remains unclear and noted that Fed policy is well positioned to adjust as economic visibility improves. He cautioned that a significant pullback in consumer spending would be needed for the economy to falter, which seems unlikely given low unemployment and steady wage gains. While spending has softened, shifts in consumer behavior may be helping to limit the inflationary impact of tariffs. He added that employment could weaken if consumers cut back, though large layoffs are expected to be avoided, and any rise in unemployment may be smaller than anticipated due to reduced immigration and slower labor supply growth. His remarks leaned modestly hawkish, highlighting the resilience of the labor market and consumer spending.Kansas City Fed Pres. Schmid said retaining a modestly restrictive policy stance is appropriate for now and supports a patient approach to changing the Fed’s policy rate. While the rate is near neutral, he stressed that inflation remains too high and that the limited inflationary impact of tariffs is a reason to hold policy steady rather than cut rates. He acknowledged the uncertainty around tariffs’ full effects in the coming months but said he would adjust his views if there were clear signs of significant weakening in demand growth. His remarks carried a hawkish tilt, signaling a preference for keeping policy tight until inflation risks are better contained.
The newly appointed BLS commisioner EJ Antoni spoke for the first time on FoxBusiness and argued that the monthly jobs report should be suspended, claiming its methodology, economic modeling, and assumptions are fundamentally flawed. He said the current approach leaves businesses uncertain about how many jobs are truly being added or lost, making it difficult to anticipate Fed policy moves. Until these issues are fixed, he suggested halting the monthly release and relying instead on the more accurate, though less timely, quarterly data.
The US federal budget deficit ballooned to $-291 billion, greater than the -$250 billion expected. No comments from the White House regard to that despite the $29.6 billion of tariff revenue collected in the month of July.
Bitcoin is back above $120,000 at $120,216. That is near the high for today at $120,304.
EUR -0.51%JPY -0.20%GBP -0.53%CHF -0.69%CAD -0.04%AUD -0.26%NZD -0.29%
The AUDUSD was lower at the start of the US session after the RBA cut rates by 25 basis point. However, the price snapped back with the overall dollar selling and trading in the US session.
This article was written by Greg Michalowski at investinglive.com.Hence then, the article about investinglive americas fx news wrap 12 aug cpi rise does not scare the market was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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