The consumer price index released today (CPI) has attracted market follow. The overall CPI is 2.7%, lower than the market expectation of 2.8%, indicating a relief in inflationary pressure. However, the core CPI reached 3.1%, higher than the expected 3%, which may influence the Fed's future policy decisions.



After the data was released, the market's expectations for a Fed rate cut in September have risen. According to the CME's 'Fed Watch' tool, the probability of a 25 basis point rate cut in September has climbed to 94%. This indicates that investors' confidence in the Fed easing monetary policy is strengthening.

Nevertheless, higher-than-expected core inflation may lead the Fed to adopt a more cautious approach in the rate-cutting process. There remains considerable uncertainty regarding the pace of future rate cuts. Analysts suggest that investors should closely follow the upcoming Producer Price Index ( PPI ) data, as well as the public speeches of Fed officials, to more accurately assess the direction of future monetary policy.

Overall, although inflationary pressures have eased, the continued rise in core inflation remains an important factor for the Fed to consider. Market participants need to stay vigilant and follow more economic indicators and policy signals to make informed investment decisions.
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SundayDegenvip
· 08-12 15:52
The market is swaying left and right again.
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MoonMathMagicvip
· 08-12 15:46
The bottom has probably been reached.
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StablecoinArbitrageurvip
· 08-12 15:39
Core CPI matters more.
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