While the overall U.S. CPI continues to slow, the second consecutive month of rebound in core CPI, especially rent and core services inflation (supercore), is still causing concern in the market, CICC said.。This inflation data basically locks in a 25 basis point rate cut by the Fed in September, but does not support significant easing。The benchmark scenario is still a soft landing for the U.S. economy, but this time along with inflation stickiness, it could lead to a "stop-and-go" Fed rate cut.。This also means that the current market pricing for significant rate cuts may be overly aggressive and there is a risk of adjustment in the future。
While the overall U.S. CPI continues to slow, the second consecutive month of rebound in core CPI, especially rent and core services inflation (supercore), is still causing concern in the market, CICC said.。This inflation data basically locks in a 25 basis point rate cut by the Fed in September, but does not support significant easing。The benchmark scenario is still a soft landing for the U.S. economy, but this time along with inflation stickiness, it could lead to a "stop-and-go" Fed rate cut.。This also means that the current market pricing for significant rate cuts may be overly aggressive and there is a risk of adjustment in the future。
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