Goldman Sachs: CPI data meets expectations, focus will shift to the labor market.

According to Deep Tide TechFlow news on August 12, as reported by Jin10 Data, Goldman Sachs' Global Co-Head of Multi-Asset Solutions, Alexandra Wilson-Elizondo, stated that the CPI data for July met expectations, with the core inflation rate rising 3.1% year-on-year. The Fed is supported by the data, believing that the impact of tariffs on price levels is mostly temporary. Tariffs have not yet driven significant price increases, as companies have offset cost pressures by reducing inventory and cautiously adjusting prices, due to consumers being sensitive to price changes. The Fed's policy is highly data-dependent, and with inflation under control and signs of a weak labor market becoming increasingly evident in the revised employment data, future focus will shift more towards employment. Overall, this inflation report supports expectations that the Fed may implement an "insurance" rate cut in September, which will become a key driver for the market.