CPI Cools to 3.4% but 0.6% Retail Drop Deepens Fed's 9-3 Rate Dilemma
July macro data handed markets a contradictory signal: headline CPI cooled to 3.4% year over year, but retail sales fell 0.6%, the sharpest drop since May 2025. The crosscurrents sharpen a Federal Reserve already split 9-3 over whether to hold near 3.6% or hike. Investors now face a disinflation story colliding with a consumer-slowdown story.
Source: newsday.com · leadertelegram.com