The CPI and Trump/Putin news saw Financial Markets Rally
Posted By RichC on August 12, 2025
If you are an investor or just someone wanted some good news as inflation held steady, the market gained and had added hope noting the upcoming peace talks between President Trump and Russia’s Vladimir Putin. You might even say, “America’s Future is Bright” … a reference to my TheHustings commentary today after my previous polite comment on immigration. 😉
Part of the market rally was due to thinking the Federal Reserve might start a series of rate cuts in September. The hope is that reducing the cost of capital (borrowing) will make 
conditions even more attractive for businesses in America to expand and hire more workers.
In terms of consumer lending, the higher rates in recent years has made buying new car and in particular homes difficult for those starting families. Having lower rates should help move people who want to buy rather than rent into homeownership. Of course, unless supply increases, we could still see prices rise triggering higher inflation again.
I don’t envy the Fed Chair.
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