Analyst: Benign inflation data reinforces scenario of Fed cutting interest rates by 25 basis points in September

Analysts said that if the Jackson Hole meeting basically confirmed that the Fed was ready to cut interest rates in September, then Friday's inflation data solidified the scenario of a 25 basis point rate cut instead of a 50 basis point cut. The data performance was basically in line with expectations, and yields barely moved, while the market is still betting on a smaller rate cut next month. Traders still expect a big rate cut in November or December, but if prices continue to gradually cool without a larger-than-expected drop, the market may reconsider this expectation. (Jinshi)