Analyst: Inflation Has Not "Gone Haywire"; Market Fully Pricing in Three Rate Cuts by Year-End
BlockBeats News, September 11th, institutional analysts stated that the overall CPI monthly rate was slightly higher than expected. After the data was released, the yields of the U.S. Treasury market all saw a slight decrease, indicating that the market believed the data did not worsen, bringing some relief. Federal Reserve Chairman Powell has been focusing on the annual rate for some time.
The core CPI annual rate for August was 3.1%, unchanged from July, in line with expectations, indicating that the inflation situation did not worsen. The overall CPI annual rate rose to 2.9%, slightly higher than July's 2.7%. The report showed that housing rose by 0.4% in August, marking the largest monthly increase among all items. Food prices also rose, with the food index increasing by 0.5% this month, the at-home food index rising by 0.6%, and the away-from-home food index increasing by 0.3%.
This report, which largely met expectations, paved the way for the Fed's rate cut next week. The market has almost fully digested the expectation of three rate cuts by the end of the year. (FX678)
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