1. U.S. June Consumer Price Index (CPI) came in lower than expected (3.5% YoY), prompting traders to slash bets on immediate Fed rate hikes.
2. Federal Reserve officials (Warsh & Powell) reiterated a strong commitment to the 2% inflation target and are monitoring AI's impact on the economy and labor market.
3. Geopolitical tensions in the Middle East escalated with reports of missile/drone threats in Kuwait, explosions in Iran, and Trump's comments on the Strait of Hormuz.
CPI Cools, Fed Reiterates 2% Target Amidst Geopolitical Jitters
