According to Huatai Securities, core CPI inflation in August was heating up faster than expected. The data has “removed obstacles” for the Federal Reserve's interest rate hike in September. If Walsh fails to deliver on his hawkish promises in September, the Fed's credibility will clearly suffer, and long-term interest rates will be more difficult to control. In August, the CPI growth rate rebounded 0.32pp to 0.40%, up 0.1pp to 3.4% year over year, all in line with expectations; core CPI rebounded 0.07pp to 0.29% month-on-month, higher than expected 0.2%, and core CPI fell 0.1pp to 2.4% year on year, in line with expectations. Core CPI exceeded expectations month-on-month in August. Inflation slowed repeatedly, and expectations of market interest rate hikes heated up, but gold and US stocks rose, and long-term US bond yields declined, and the market seemed to have “run out of steam.”

According to Huatai Securities, core CPI inflation in August was heating up faster than expected. The data has “removed obstacles” for the Federal Reserve's interest rate hike in September. If Walsh fails to deliver on his hawkish promises in September, the Fed's credibility will clearly suffer, and long-term interest rates will be more difficult to control. In August, the CPI growth rate rebounded 0.32pp to 0.40%, up 0.1pp to 3.4% year over year, all in line with expectations; core CPI rebounded 0.07pp to 0.29% month-on-month, higher than expected 0.2%, and core CPI fell 0.1pp to 2.4% year on year, in line with expectations. Core CPI exceeded expectations month-on-month in August. Inflation slowed repeatedly, and expectations of market interest rate hikes heated up, but gold and US stocks rose, and long-term US bond yields declined, and the market seemed to have “run out of steam.”