Analysts: If CPI data does not rise sharply in August, the Federal Reserve is expected to cut interest rates by 25 basis points

According to BlockBeats, on September 11, the U.S. August CPI data will be released at 20:30 tonight. The market currently priced the possibility of the Federal Reserve cutting interest rates next Wednesday by 100%, especially after unexpected declines in producer prices in August and weak U.S. employment growth. The only question now is how much rate cuts will be and what will officials say about further rate cuts this year if Thursday’s CPI data is higher than expected. At the same time, companies are digesting some of the tariff costs brought by the Trump administration's trade policy, which has eased inflationary pressure to a certain extent. Economists expect overall CPI year-on-year gains in August will rise slightly to 2.9% from 2.7% in July after accounting for a 0.3% increase. Excluding the core CPI of food and energy is expected to remain unchanged at 3.1% year-on-year and 0.3% month-on-month. BeiChen Lin, senior strategist at Russell Investment, said a "very huge" upside surprise is needed to prevent the Fed from cutting interest rates by 25 basis points next week, but even the mild, overexpected data is enough to allow officials to express concerns about the risks of future price increases while cutting interest rates. The “Core Services” category in the CPI report deserves a focus.