The better-than-expected US inflation figures published this Wednesday in fact reveal a 'mixed picture', according to the teams at Lombard Odier Asset Management.

While the Swiss bank's asset management arm welcomes the deflation observed in goods prices, its analysts believe that developments in services prices paint a 'complex' picture that is difficult for the Federal Reserve to assess.

Although current dynamics show an improvement compared to the same period 12 months ago, services inflation remains on a trajectory above 3%, indicating persistent inflationary pressures in the services sector", stresses Florian Ielpo, Head of Macroeconomic Research at LOIM.

From the professional's point of view, these data are not necessarily sufficient to justify an 'aggressive' adjustment of the Fed's monetary policy next month.

'While a rate cut in September seems justified, the decision for a larger 50 basis point cut remains a question mark in the absence of major systemic risks', judges Florian Ielpo.

The economist points out, however, that these data come on top of recent signals pointing to a deceleration in the job market, indicating that the US is currently experiencing an economic slowdown.

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