Despite the hotter-than-expected producer inflation reading, markets remain convinced that the Federal Reserve will cut interest rates in September by a quarter of a percentage point.

Secretary of the Treasury Scott Bessent has even called for more aggressive action, saying rates should be 150–175 basis points lower and hinting that a half-point cut could be on the table.

Wall Street wrapped up another record-setting week, with the S&P 500, Nasdaq 100 and Dow Jones all hitting new all-time highs as investors continued to bet on the strength of corporate America, even as fresh data pointed to an unwelcome resurgence in inflation.

July’s consumer price index held steady at 2.7% year-over-year — slightly below expectations — offering a brief sense of relief. But the real inflation shock ca

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