#CPI数据来袭能否触发9月加息 Tonight, Beijing time on September 11 at 20:30, the August CPI is set to make its final appearance. This data will directly determine whether the Federal Reserve will restart rate hikes at its September 16 meeting.
Last week’s Non-Farm Payrolls added 162,000, versus expectations of 56,000. This was an extremely, extremely, extremely big beat, marking the strongest month-on-month growth since March. As of now, market pricing has put the probability of a rate hike in September at over 50%. The so-called “money votes” for a hike on major prediction markets—investments of more than $100 million—are even stronger evidence compared with the past when just anyone could call for rate hikes or cuts with a few words.
Latest July CPI came in at +3.3% overall (prior month 3.46%), and Core CPI was +2.5%. Meanwhile, geopolitical tensions in the Middle East continue to push up energy costs. With oil prices soaring, imported inflation pressures have not eased, and it is still far from the 2% target.
So, Tonight, if CPI month-on-month comes in above +0.3%, a rate hike in September is essentially a done deal. The Federal Reserve has already been publicly split internally; voters are each sticking to their own view between “crushing inflation” and a “soft landing.” And what Waller has said recently is also a clearly hawkish signal.
The Fed will still let the data speak. No matter how much Trump—currently the topic of hot discussion—puts pressure on the issue, Waller is within the Fed’s system and has already positioned himself hawkish, so he’s unlikely to go against the data to make a decision.
However, Tonight, if CPI month-on-month is below +0.2%, especially if core inflation unexpectedly cools, it would give the FOMC an extra step to stand pat. The current 10-year inflation expectations are 2.34%, and the 1-year consumer expectations are 2.3%. Long-term expectations have not completely slipped their anchor—so rate hikes can still be pushed back.
Those who are long $PONS may have hope to get out of the bind!