Complete CPI Preview, And How Goldman Is Trading The Last Big Event Before The Fed

In the past two weeks, we have seen a barrage of dovish developments - first, the unexpectedly dovish pivot by Powell at Jackson Hole, then last Friday's dismal (dovish) jobs report, this week's banchmark payrolls revision which confirmed another 911K Biden 2024 jobs were only created in some spreadsheet, and today's deflationary PPI report - which pushed the odds of a 25bps rate cut next week to 100% and even ushered in a 15% probability of a 50bps rate cut. Tomorrow we get the week's final key economic report - the August CPI update - which will not only further cement a 25bps rate cut, but potentially make a 50bps rate cut next week a lock. 

Here's what Wall Street expects from the August CPI report: