Fed September Rate Hike Unlikely If Oil Holds Above $80

Economists suggest the Federal Reserve will likely pause rate hikes in September if crude prices remain near $80, citing softer inflation data and easing liquidity risks.

Woofun AI reports that Jeremy Siegel, senior economist at WisdomTree, stated the Federal Reserve is unlikely to implement a rate increase in September provided oil prices sustain levels around $80 per barrel. This week's CPI and PPI figures fell below expectations, while Goldman Sachs reduced its projections for the PCE index. Siegel observed that the S&P 500 surpassing 7,800 points for the first time has mitigated liquidity tightness risks. He further noted that AI-driven corporate profit growth is prompting capital rotation from growth equities to value stocks.