Fed Will Stay on Hold in September, Pimco's Wilding Says

• US July Core CPI rose 0.2% M/M, aligning with expectations and providing 'good news' for Fed officials.
• Pimco anticipates the Federal Reserve will remain on hold in September, awaiting further data releases.
• Shelter categories are showing disinflationary trends, and while energy prices might see short-term increases, their one-time price adjustment effects are expected to wear off next year.

Pimco Economist Tiffany Wilding analyzes the in-line US July CPI report, noting core CPI rose 0.2% month-over-month. She views this as a 'relief' for the Fed, suggesting they will likely remain on hold in September. Disinflation in shelter and moderating energy prices are key factors, though airfares were stronger, and the Fed remains cautious, ready to hike if necessary.