Natixis: Fed Stays ‘Inflation-First’ After Mild CPI, Yet Weak Jobs Data Restores Dual Mandate Focus

Fresh CPI data confirms easing inflationary pressures, yet the Federal Reserve is likely to keep inflation at the forefront until its September meeting. Natixis economists Christopher Hodge and Selin Aker observe that last Friday’s weak jobs report rebalances the central bank’s dual mandate. Subdued shelter costs offset rises in education and recreational items, while the supercore index stayed contained at 0.19% month-over-month.