On the change, Morgan Stanley notes hat "a reversal in key components points to disinflation ahead, but given the lack of progress in recent months it will take a bit longer for the FOMC to gain confidence to take the first step". This fits with what traders are looking at as well, with the odds of a September rate cut seen at ~82% currently. The total rate cuts priced in for the year is at ~44 bps, not much changed from after the US jobs report last week.
