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The most recent Producer Price Index (PPI) data came out hotter than expected, showing a 0.2% month-over-month rise in prices, topping Wall Street's expectations of 0.1%. Alongside that, June's Consumer Price Index (CPI) data revealed a slowing in inflation, with a 0.1% drop month-over-month.

Comerica Bank Chief Economist Bill Adams joins Wealth! to give insight into the latest economic data and what it means for the broader economy.

"I think the Fed just sort of needs to see the economy holding where it is right now. The real GDP in the first half of this year, I estimate is a little under 2% annualized. And I'm expecting this pace to hold in the second half as well. And, with that, there's a little margin of slack that's open in the labor market. Unemployment rate is back above 4%. Inflation is moving lower, kind of two steps forward, one step back. And that's the mix of data and economic conditions that the Fed wants to feel comfortable cutting interest rates." says Adams.

He follows that up, affirming: "They're not going to cut them down to zero overnight. But I think the outlook is for gradual reductions over the next 12 to 18 months."

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Nicholas Jacobino