Larry Kudlow: This is my 'hunch' about the Federal Reserve

• The June Producer Price Index (PPI) fell by 0.3% month-over-month, surprising Wall Street with a deflationary report.
• The June Consumer Price Index (CPI) also showed a deflationary month-over-month decline of 0.4%, with the year-over-year rate at 3.5%.
• Real Average Hourly Earnings rose 0.8% in June, marking the best monthly real wage gain in 11 years (excluding the pandemic).
• Kudlow believes these deflationary reports have taken Fed rate hikes 'off the board' for the rest of the year.
• Despite US strikes on Iran, inflation expectations are coming down, WTI oil prices have stabilized, the US dollar is strong, and profits, productivity, and stock prices are all soaring.

Larry Kudlow highlights recent deflationary trends in the Producer Price Index (PPI) and Consumer Price Index (CPI), coupled with rising real wages. He suggests these positive economic indicators will prevent the Federal Reserve from raising interest rates for the remainder of the year, leading to a 'Goldilocks' scenario despite geopolitical tensions.