Capital Economics' chief economist Stephen Brown said that following the June US consumer price index, the likelihood of the Fed hiking rates at this month's FOMC meeting has all but vanished. While core CPI was flat month-on-month, it was not as good a result for the Fed's preferred core PCE price index as it appears, and a preliminary estimate ahead of the PPI release suggests the core PCE deflator rose 0.18 percent month-on-month, a slightly firm figure. Even so, core PCE growth is expected to slow to around 3.3 percent annualized, which could provide enough grounds for doves to persuade hawks and lead to a rate hike pause this month. Meanwhile, with the AI investment boom and recovering consumer demand, core inflation is expected to continue exceeding target, and Brown expects the Fed to raise rates within the year.