Analyst: CPI data further confirms the expectation of a rate cut in September. In the future, buying risk assets on dips is advisable
Pepperstone Group's senior research strategist Michael Brown stated that the CPI data further proves that the Fed may cut interest rates in September. "In the medium term, if a 'path of least resistance' emerges, it should continue to lead the stock market higher, despite the second-quarter earnings season posing the current key risk." However, even if the rate cut is further delayed (contrary to recent remarks), a flexible and robust "Fed policy" still exists, with policymakers still seeking to ease policy sooner rather than later. Therefore, the decline may still be relatively shallow, providing a buying opportunity on dips."
July 11th, Jinshi Data: Michael Brown, Senior Research Strategist at Pepperstone Group, stated that the CPI data further proves that the Federal Reserve may cut interest rates in September. "In the medium term, if the 'path of least resistance' emerges, it should continue to lead the stock market higher, despite the key risks posed by the second-quarter earnings season." However, even if the rate cut is further delayed (contrary to recent indications), a flexible and robust "Fed policy" still exists, with policymakers still seeking to ease policy early. Therefore, the decline may still be relatively shallow, providing a buying opportunity on dips."