Analysis: CPI may stimulate the Federal Reserve to cut interest rates by 50 basis points in September

Odaily Planet Daily News: Prior to the release of July Consumer Price Index (CPI) data later on Wednesday, bullish bets in the world's largest bond market have resurfaced, indicating that traders are preparing for further increases as they expect CPI data to show continued downward pressure on prices. Investors betting that the US treasury bond bond market will rise further are paying attention to the upcoming US inflation data, and they hope that these data can further prove the reasons for the Federal Reserve to accelerate the pace of interest rate reduction. Traders are divided on whether the Federal Reserve will cut interest rates by 25 basis points or 50 basis points in September. Swaps trading shows that the market expects the Fed to cut interest rates by 36 basis points in September. Overall, they expect the Federal Reserve to cut interest rates by approximately 1 percentage point for the remainder of 2024. (Golden Ten)