Tonight, the financial markets will face a dual test as two major events unfold simultaneously.
20:30, Inflation 'test' Powell. **The U.S. core PCE data for July will be released soon, marking the first crucial test of Powell's previous 'dovish' remarks. This data will directly influence the market's confidence in a rate cut in September. If the data exceeds expectations, the rate cut expectations will be dampened; if the data is moderate, it will provide strong support for a rate cut in September.
22:00, Cook 'sues' Trump. **Another storm is brewing simultaneously. Fed Governor Cook was fired due to fraud allegations made by Trump, and she has filed a lawsuit and requested a restraining order. Tonight's hearing will determine her fate. This incident not only concerns personnel stability within the Fed but also raises deep concerns in the market about its regulatory independence.
These two events may seem independent, but they are intricately linked. On one side is the inflation data that determines the direction of monetary policy; on the other side is the internal turmoil that may affect decision-making coherence. The dual uncertainty is bound to make tonight a market focus, and the subsequent developments are worth close attention.
