US Consumer Inflation Expected to Rise, Fed Rate Cut Likely

US Inflation and Federal Reserve Outlook

• 📈 Consumer price inflation is forecast to pick up to 2.7% year-on-year, the highest in 7 months, driven by tariffs increasing commodity costs.
• ⚠️ Factors like labor shortages among farmworkers, partly due to fear of deportation, are also contributing to rising US food prices.
• 💡 Despite the expected rise in inflation, the Federal Reserve is still widely anticipated to cut rates next week, with a 50 basis point cut seen as a strong possibility.

European Central Bank and Tariffs

• 🇪🇺 The European Central Bank is expected to keep rates unchanged, with inflation in the Eurozone forecast to fall below the bank's 2% target.
• 💬 Hawkish members believe the European economy is resilient to tariffs, though the ECB chief may signal a potential cut later in the year.

Market Movers: Oracle and Clana

• 💰 Oracle's stock saw a significant jump, bringing co-founder Larry Ellison close to Elon Musk in net worth, fueled by multi-billion dollar cloud computing contracts, including a major deal with OpenAI.
• 🚀 Clana, a 'buy now, pay later' lender, had a strong IPO debut in New York, opening 30% above its IPO price and valuing the company at nearly $20 billion.
• 📈 This week marks the busiest period for IPOs in years, with several crypto companies also going public.