US: Mixed economic releases – TDS

Analysts at TD Securities note that the Fed's Monetary Policy Report conveyed an upbeat tone on recent economic developments and signaled a continued gradual approach to rate hikes.

Key Quotes

“Looking to the data, import prices fell by 0.4% m/m in June, well below the market consensus for a 0.1% increase. Weakness was broad-based but a 2.6% decline in food prices weighed heavily on the headline print.”

“Preliminary University of Michigan Sentiment for July was slightly weaker than expected at 97.1 (market: 98.0) which reflected more concern around current economic conditions; the expectations index was little changed on the month.”

“Inflation expectations edged lower from June, with short-term expectations easing to 2.9% from 3.0% while long-term expectations fell to 2.4% from 2.6%.”