Market Data Not Expected To Change Powell's Tone

Two key data points were released this morning in the middle of Jerome Powell's 2-day Congressional meeting schedule. The data were broadly favorable, but are not expected to change Powell's dovish stance. The two releases: June consumer pricing index or CPI, and weekly jobless claims.

CPI

The Labor Department reported that core CPI rose 0.3% last month after four consecutive months of 0.1% gains. It marks the largest increase since January 2018. The data reflected increases in used cars and trucks, apparel, household furnishings, healthcare and rent. Core CPI 12-month percent change was up to 2.1%.

The overall CPI number, inclusive of cheaper food and energy prices, rose only 0.1% in June, following that same reading for May. The overall CPI 12-month percent change rose to 1.6%.

Jobless Claims

The U.S. Labor Department reported the lowest jobless claims since May 2019. State unemployment benefit initial claims fell by 13,000 to 209,000 on the July 6 reading. Weekly data revisions included 1,000 new applications received.

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