Inflation cools down! The U.S. July CPI annual rate fell to 2.9% (Core CPI 3.1%), hitting a more than one-year low, significantly below expectations! After the data was released (August 13), market expectations for a Federal Reserve rate cut surged.

Powell's latest statement: In a public speech on August 15, Federal Reserve Chairman Powell affirmed the progress made in inflation, calling the data 'encouraging,' but emphasized that 'more evidence' is needed to be confident that inflation will sustainably return to the 2% target. He reiterated that policy will 'depend on data,' and the timing of a rate cut has not yet been determined.

Market reaction: Boosted by the cooling inflation and Powell's relatively moderate remarks, market optimism continued, with the Dow Jones reaching a historic high this week. Currently, the futures market bets that the Federal Reserve may start cutting rates as early as September or November.