FAC: Market focus returns to inflation data after Federal Reserve resolution

According to Huobi HTX, FAC said that the Fed's decision to cut interest rates by 25 basis points meets general expectations and is not disappointing. Although our unconventional forecast for a 50 basis point cut rate cut is not realized, as we mentioned last week, if the September meeting decides to cut interest rates by 25 basis points, it is likely that October and December will continue to cut interest rates by 25 basis points each, and the median value of the dot chart does confirm this. We also note that the Fed expects interest rate levels to reach 3.38% at the end of 2026, which is consistent with our forecast but is nearly 50 basis points higher than the current market pricing. Next week, the market focus will completely turn to personal income and expenditure data and the inflation indicator favored by the Federal Reserve - the Personal Consumer Expenditure Price Index (PCE). (Jin Shi)