ChainCatcher Message, former Vice Chairman of the Federal Reserve and current PIMCO advisor Richard Clarida stated that although U.S. inflation performed better than expected earlier this year, the pressure remains significant due to preemptive stocking and accumulated tariffs.

He noted that in June, the average effective tariff rate in the U.S. rose to 15.6%, the highest since 1937, which could push inflation back above 3%. Clarida questioned whether the Federal Reserve would maintain its forecast of two rate cuts this year and emphasized that if the market doubts the new chairman's independence, the stock and bond markets will react severely. He believes that the 10-year Treasury yield has already shown the return of the 'bond vigilantes.'