Producers of metals and other raw materials rallied amid optimism about inflation and interest rates.
In the second day of congressional testimony, Federal Reserve Chair Jerome Powell said the central bank is focused on pulling off a "soft landing." One strategist is skeptical that Powell's Fed will be able to achieve something that has eluded many of its forebears.
"He kept mentioning the difficulty that, if they cut too soon the risk is inflation coming back, and if they cut too late, the risk is undue economic declines ... that really is threading a needle," said Brent Schutte, chief investment officer at money manager Northwestern Mutual Wealth Management. Ahead of the past four recessions, Schutte noted, the Fed had started to raise rates an average of 10 months before the official opening of the recession.
Currently, economic data is decidedly mixed, Schutte said: "is the labor market strong? Or is the labor market weak?"
Core consumer-price inflation, excluding the volatile energy and food categories, is likely to have accelerated to 3.5% year-over-year in June, versus 3.4% in May, according to economists at brokerage Santander.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-10-24 1827ET
