A ‘glass half full’ takeaway from the July CPI report

George Seay, Founder And Chairman of Annandale Capital, takes a deeper look into the data.

Transcript

00:00All right. First, I want to get your reaction to the latest inflation data.

00:03July CPI came in tamer than expected, although core did come in slightly hot.

00:08The market seems to be taking it as good news.

00:10What do you make of it? Are you looking at it as glass half full as well?

00:15I am. I think that when the market's priced for perfection,

00:19a lot of these obscure economic statistics that most people don't pay a whole lot of attention to,

00:23except for the professionals, start really splitting hairs and getting into granular analysis.

00:28And, you know, the result we got was not too far off what was expected, except for the core, as you mentioned.

00:33But I think it was just right for Wall Street. It was it was the porridge that was just right.

00:38Not too hot, not too cold. Basically, you still have inflationary pressures to a small degree.

00:43But there's no evidence that tariffs are really jacking up inflation yet.

00:47But it's not so extreme that people worry about the Fed not cutting in September and for the rest of the year.

00:53It shows a strong economy, shows a healthy economy, but inflation not too hot so the Fed can continue to cut.

00:59And the market loves that.