The Fed Is Challenged, & Red Tape Is Repricing the Miners

US inflation data kept the Fed in an uncomfortable spot: core PCE rose 0.2% MoM and 3.3% YoY in July (both in line with consensus), while headline PCE came firmer at 3.7%, about 10 bps above expectations. The firmer headline reading increases the odds that the Fed stays cautious on cutting rates. Markets likely need to reprice the rate path, especially near-term yields.