The latest July Core Consumer Price Index (CPI) data released by the United States has caused market turbulence. The data shows that the Core CPI rose by 3.1% year-on-year, not only higher than the previous 2.9%, but also exceeding the market expectation of 3%, reaching a nearly five-month high.
This change disrupts the market's expectation of a continued cooling of inflation.
As a key indicator that excludes the volatility of food and energy prices, the rise in Core CPI indicates that inflationary pressures are building. This trend may alter the Federal Reserve's policy direction, with the likelihood of an interest rate cut in September rapidly diminishing.
In light of the current inflation level and the 2% policy target gap, the Federal Reserve may maintain a high-interest rate environment and even consider further tightening policies.
This data immediately triggered a chain reaction in the financial markets.
The US dollar may gain support and strengthen, bond yields may rise, the tech-heavy Nasdaq index faces adjustment pressure, and safe-haven assets like gold are under price pressure.
The US stock market opened high and continued to rise, you understand what I mean, friends
