Miran believes inflation is manageable and avoids discussing rate policy during his nomination.
by VT Markets
/
Aug 15, 2025
**Federal Reserve and Inflation Outlook**
Recent comments about low inflation, even from nominees, back up what we’re seeing in the market. The latest July 2025 CPI report shows year-over-year inflation at 2.5%, which is manageable for the Federal Reserve. This information suggests that the big interest rate hikes from 2022-2024 are behind us.
Because of this, we can expect interest rate futures to indicate a softer approach from the Fed. The market is already hinting at a possible rate cut by early 2026, and these comments may bring that expectation closer. Traders should consider options strategies on SOFR futures that could benefit if rates stay stable or decrease in the coming months.
This stability usually leads to less market volatility. The VIX has been stable in the mid-teens for most of the summer of 2025, and with major inflation risks appearing minimal, there’s little chance of a big spike. Selling volatility using strategies like iron condors on broad market indices could be a smart move.
**Market Dynamics and Investment Strategies**
We noticed a similar trend after the Fed paused in late 2018, where that halt led to a strong rally in risk assets. The recent jobs report from July, showing a healthy addition of 160,000 jobs without overheating, supports the idea of a “soft landing.” This environment is favorable for equities, making bullish call spreads on major indexes a sensible choice.
Create your live VT Markets account and start trading now.
by VT Markets
Aug 15, 2025
Insights 
VT 
