Inflation data from the Bureau of Labor Statistics appeared to offer some solace for the doves on the FOMC.

Headline CPI rose an in-line 0.1% m/m in July, rebounding from the 0.4% decline seen last month. On the year, the index slipped a tenth to 3.4%, also matching estimates. Core CPI increased 0.2% m/m, following a flat June reading, while the annual rate eased to 2.5% from 2.6%. Both figures were in line with forecasts.

The BLS said shelter costs rose 0.1% in July, accounting for roughly two-thirds of the overall monthly increase. Food prices increased by the same amount, with food away from home up 0.3%. Partially offsetting those gains, the energy index fell 1.5%, led by lower gasoline prices.

Assessing the report, Barclays’ Pooja Sriram said the data were likely comforting enough for centrists on the FOMC to keep policy rates steady, shifting the focus instead to next month’s labour market and inflation reports.

“The rebound in July CPI restores the state of play we had pencilled in before June's downside surprise and points to reasonably contained inflation pressures,” the economist said.

(Continue Reading – LiveSquawk)

President Donald Trump claimed the US had “total control over the Hormuz Strait,” as Washington and Tehran hardened their positions in deadlocked negotiations over the critical waterway.

“We own it,” Trump told reporters at Joint Base Andrews outside Washington late Tuesday, an assertion Iran has dispelled via intermittent attacks on ships transiting the passage. “At some point, maybe they’ll do something, and then they get blown away.”

(Continue Reading – Bloomberg)

U.S. Army troops faced off against Ukrainian drone operators at a military exercise in Germany earlier this year. It didn’t go well for the Americans.

During the exercise, called Combined Resolve, Ukrainian drone units easily spotted and defeated U.S. troops and armored vehicles on rotation from Fort Hood in Texas, according to people familiar with the events.

(Continue Reading – WSJ)