US inflation data eases pressure on rate hikes and offers stability to markets

Move gives ECB more breathing room, though rate rise still expected in September

Gold prices have been volatile in 2026, but a recent rally shows renewed investor interest amid tamer inflation data and changing Fed rate expectations.

Strong AI earnings lift S&P 500, Nasdaq as inflation data calms rate-hike jitters  Reuters

The latest Consumer Price Index report helped to reinforce the patient approach adopted by many officials at the Federal Reserve about raising rates, but it has not resolved the debate altogether.

The Consumer Price Index rose 3.4% in July over the past 12 months, cooling slightly from 3.5% in June, the Bureau of Labor Statistics said Wednesday.

A surprising decline in U.S. jobs last month isn’t enough to discourage the Federal Reserve from raising interest rates soon, but a tame inflation report for the second straight month could do the trick.

The Cleveland Fed president dissented at last month's policy meeting and says current rates are not meaningfully restricting the economy