JP Morgan response to the US June CPI report - soft landing path a "smidgeon" wider

The US CPI report for June came in lower than the consensus expected for both headline and core m/m.

• US June CPI y/y 3.0% versus 3.1% expected

JP Morgan, in a nod to Federal Reserve Chair Powell's comment about a narrow path to avoiding recession, says:

• "... the narrow path to a soft landing looks a smidgeon wider this morning"

Citing:

• "Core CPI is already off 1.7%-points from its high. The standard models predict that the next 2-3%-points of disinflation will require a significant employment sacrifice, but those models missed both the run-up and partial climb down in inflation."

Goldman Sachs are tipping the July Federal Open Market Committee (FOMC) rate hike to be the final in the cycle:

• Goldman Sachs response to the US CPI report - affirms a final FOMC rate hike July