Inflation Report Keeps Fed Rate Hike Debate Alive

The latest CPI report came in largely as expected, but inflation is still running above the Fed’s target and Kevin Warsh may have a difficult case to make if he wants to keep rates unchanged.

Chuck Zodda and Paul Lane break down the July inflation report, why lower energy prices helped keep the headline number contained, and why core inflation may still be too elevated for the Fed to ignore. They also discuss how rising gas prices could affect the next CPI report, why markets now see a greater chance that the Fed stays put in September, and whether the economy could handle a modest rate hike. Plus, they look at CoreWeave’s revenue surge, the massive financing needs behind the AI data center buildout, Super Micro Computer’s latest earnings, and Todd Lutsky’s guidance on last-minute Medicaid planning for nursing home costs.