Welcome to Seeking Alpha's Wall Street brunch, our Sunday look ahead to this week's

market-moving events, along with the weekend's top news and analysis.

Hello, today is Sunday, September 7th, and I'm your host, Kim Khan.

The pendulum swings from one part of the Federal Reserve's dual mandate to the other this

week, moving from full employment to price stability. Last week saw the week August payroll numbers

underscore the cracks in the labor market, and revision showed that the economy actually lost jobs

in June. This week, the latest inflation figures arrive with the focus on the August CPI report

on Thursday. Economists expect that the headline CPI rose 0.3% on the month,

taking the annual rate up to 2.9%.

The core CPI is also expected to show a 0.3% monthly rise,

staying at 3.1% year-on-year.

Wells Fargo economists say the July CPI offered further evidence

of the difficult road ahead for the Federal Reserve.

Core inflation quickened, with broad-based strength across goods and services,

illustrating that tariffs are not the only forces keeping inflation sticky.

We expect the firmer trend to continue in August.

While they expect spillovers into services to be limited,

they continue to expect the core CPI and PCE to run around a 3% annualized

pace over the next six months or so before resuming the downward trend in the spring

of next year. As far as rates are concerned, the market is fully priced in a 25 basis point

Fed cut when the FOMC decides on September 17th, with around a 10% chance of 50 basis

points. The odds of a half-point cut would jump if CPI comes in tame, but a hot number could fuel worries about stagflation, with prices continuing to rise as labor demand approaches recessionary levels. Freya Beamish, head of macro research at T.S. Lombard, says the risk for the Fed is tilted more towards a resumption of hawkishness beyond September. For the

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