Treasuries gained in the week that CPI rose 0.8 percent in July, the "fastest pace in 17 years". Even an unexpected rise in Industrial Production doesn't changed the view that the Fed expect that the slow growth could contain inflation. Futures contracts show that there is less than 25 percent chance for an interest rate rise by the end of the year.
- Fed's Stern expects that "the U.S. economy will probably continue on a path of slow growth, with unemployment rising and inflation easing", Bloomberg said.
- In another report, Chicago Fed President Charles Evans said the second half "likely be extremely sluggish" and inflation should ease "over the medium term".
- Dennis Lockhart, Federal Reserve Bank of Atlanta President, who is not a voting member until the next year, views "the current situation as reasonably balanced, with a great deal of uncertainty around both the downsides to growth and upsides to inflation".
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