ChainCatcher news, the Fed's preferred PCE inflation indicator will not be released until the end of the month. However, unless there are unforeseen macroeconomic changes, it is now almost a foregone conclusion that the Fed will significantly cut borrowing costs at the September meeting. However, it is still difficult to predict the specific content of policymakers' next move, and this uncertainty suggests that there may be more volatility in the future.
The CME Fed Watch tool shows that the market is still undecided on whether the Fed will cut interest rates by 25 or 50 basis points next month, and traders are slightly inclined to a more cautious rate cut. If the Fed takes more aggressive measures, it may boost the appeal of the retail and consumer sectors. But if officials are more cautious in cutting interest rates, investors may think now is a good time to buy the seven major technology giants in the U.S. stocks. With the upcoming release of initial claims and retail sales data, the situation will continue to change. The Fed may also use the opportunity of the Jackson Hole meeting next week to hint at the direction of interest rates.
