Inflation Data Sparks Rush For Safe Havens, Jerome Powell Says Labor Market 'Not Overheated' And More: Economics Weekly Round-Up

The past week was a rollercoaster ride for the markets, with inflation data sparking a rush for gold, real estate, treasuries, and yen. Meanwhile, Federal Reserve Chair Jerome Powell‘s comments on the labor market and interest rates kept investors on their toes. Let’s dive into the top stories of the week.

Inflation Data Sparks Investment Rush – The recent inflation data triggered a rush among investors towards gold, real estate, treasuries, and yen. Traders are now anticipating a rate cut in September. The Invesco CurrencyShares Japanese Yen Trust FXY and SPDR Gold Trust GLD are among the notable mentions. Read the full article here.

Powell on Labor Market and Interest Rates – Federal Reserve Chairman Jerome Powell stated that the labor market is strong and not overheated. He added that a policy rate cut would not be appropriate until the Fed gains greater confidence that inflation is heading sustainably toward 2%. He made these comments during his semiannual testimony before the Senate Banking Committee. Read the full article here.

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Analyst Predicts Positive Market Response to Fed Meeting – David Zervos, Chief Market Strategist of Jeffries, anticipates a positive market response to the forthcoming Federal Reserve meeting. He believes the market will like what they hear at this July meeting, drawing parallels with the dovish tone of the December meeting. Read the full article here.

Higher Producer Prices Indicate Persistent Inflation – Economists suggest that inflation may stay elevated beyond people's expectations. The Producer Price Index released Friday showed a higher-than-expected increase in June, surprising investors. Observers anticipate rate cuts on the horizon after a larger-than-expected drop in the monthly Consumer Price Index inflation gauge issued on Thursday. Read the full article here.

Housing Market Bubble About to Pop – A massive bubble has developed in the housing market, and it is about to pop, warns a real estate executive. This comes amidst a rush for real estate investments triggered by inflation data. Read the full article here.

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This story was generated using Benzinga Neuro and edited by Ananya Gairola

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