Muted Inflation Data May Give Fed a Break on Interest Rates

US consumer inflation data slowed to 3.4 percent in July, down from previous months. This slight decrease could provide the US Federal Reserve with some breathing room when it comes to interest rates.

The latest figures show that consumer prices ticked up by just 0.1 percent from a month earlier, despite turbulent oil prices caused by the ongoing war in Iran.

According to Ron Sanchez, Chief Investment Officer of Fiduciary Trust International, the muted inflation data is likely making it less likely for the Fed to hike interest rates.