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Cooler Inflation Takes Next Fed Rate-Hike Size Down to the Wire

  • Barclays’ Pond favors 50 basis-point move at next FOMC
  • Scotiabank’s says its premature to judge September decision
The Marriner S. Eccles Federal Reserve building in Washington, D.C.

The Marriner S. Eccles Federal Reserve building in Washington, D.C.

Photographer: Andrew Harrer/Bloomberg
Updated on

Economists are divided on whether slower US consumer-price growth for July means the Federal Reserve could ease its aggressive rate-hiking program, making 75 basis-point moves less definite.

The consumer price index increased 8.5% from a year earlier, cooling from the 9.1% June advance that was the largest in four decades, Labor Department data showed Wednesday. Prices were unchanged from the prior month.