US inflation data for July is higher than expected, and expectations for the Federal Reserve to raise interest rates in September are heating up

According to a report by JinShi, the US inflation index rose by 3.7% year-on-year in July, higher than economists' expectations. Interest rate futures data showed that the probability of the Federal Reserve raising interest rates in September increased from about 36% to about 42%. AI interpretation: The unexpected rebound of inflation data directly shattered the market's illusion of a rapid decline in prices. This result proves that the stickiness of inflation within the US economy remains stubborn, forcing the Federal Reserve to maintain a tightening policy to curb price pressures. The market's repricing of interest rate hikes reflects deep concerns about the long-term nature of the high interest rate environment. This data completely suppresses the expectation of a short-term shift towards loose monetary policy and strengthens the necessity for the Federal Reserve to maintain high interest rates.