The US non seasonally adjusted CPI for August is at an annual rate of 3.4%, with an expected rate of 3.40%, compared to the previous value of 3.40%.
AI interpretation: The inflation level is completely anchored within a predetermined range, and the market's expectations for price trends are fully validated. This stable performance has eliminated concerns about inflation getting out of control, but it has also completely extinguished the dovish fantasy of inflation falling below expectations in the short term. The necessity for the Federal Reserve to maintain its current interest rate policy has further increased, and the path of monetary policy remains highly certain in the short term. The market will continue to price assets in the current high interest rate environment, and volatility will remain at a low level.
