In July, the core CPI in the United States rose by 3.1% year-on-year, reaching a nearly five-month high, surpassing both the previous value of 2.9% and the market expectation of 3%. This key indicator, which excludes food and energy prices, directly reveals that underlying inflation in the United States is on the rise, completely breaking the previously optimistic expectations of a gradual cooling.
After the data was released, the market's hopes for a Federal Reserve rate cut in September were basically shattered; inflation is too stubborn and still far from the 2% target, making it very likely that the Federal Reserve will have to maintain high interest rates or even raise them again.
Just a few minutes after this news broke, global markets have likely begun to react sharply; the dollar may strengthen, US Treasury yields may soar, and US stocks, especially technology stocks, face pressure, while gold also struggles to escape the negative impact. In short, this is an inflation report that has left investors stunned, directly putting the brakes on the Federal Reserve's easing policy, and global financial markets need to readjust their expectations.
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