The August CPI data will affect the Federal Reserve's interest rate decisions, and the stance of Federal Reserve Chairman Kevin Walsh is being closely monitored

The US August CPI report will be released on Friday at 20:30 (UTC+8), which will affect the Federal Reserve's interest rate decision next week. Nick Timiraos wrote that the core CPI is expected to rise by 0.2% month on month in August. Federal Reserve Chairman Kevin Walsh leaned towards supporting interest rate hikes at last month's Jackson Hole Conference, stating that summer inflation data was not sufficient to prove potential trend improvement. Vincent Reinhardt said that the market is testing whether Federal Reserve Chairman Kevin Walsh will deliver on the rate hike scenario. (Source: The Wall Street Journal) AI interpretation: The CPI data directly determines the policy path of the Federal Reserve's interest rate decisions. The volatility of inflation data forces the Federal Reserve to maintain a tightening stance to curb price rebounds. The market's repricing of interest rate expectations will significantly push up US bond yields and suppress the performance of risk assets. The hawkish tendency of Federal Reserve officials has made it clear that the core goal of current monetary policy is to completely eliminate inflationary stickiness.