Retail sales fell 0.6% in July even as headline CPI cooled to 3.4% year-over-year, a split between calm price data and weakening consumer demand. The Fed's balance sheet grew to $6.76tn despite ongoing balance-sheet runoff, a liquidity wrinkle Fed speakers face today.
Core CPI's 12-month rate fell to 2.5% in July on a 0.2% monthly gain, extending the gradual disinflation path Fed officials are weighing into September. Source
