U.S. core inflation jumped 0.3% in August, boosted by rising housing costs. The Fed may reconsider future rate cuts as inflation concerns linger.

In its statement, the Riksbank of Sweden indicated that if the inflation outlook remains unchanged, the policy rate may be lowered by two to three more times this year.

U.S. inflation rose to 2.3% year-over-year in July. Energy prices spiked, with natural gas prices rising 11.4%. Services inflation slowed as transportation and communications prices fell.

Although the data is expected by the central bank, it will still have some impact on market expectations and the direction of monetary policy.

The GfK Consumer Confidence Index in Germany rose to -18.4 in August, and income expectations surged to their highest level since October 2021.

The Fed says that more good data is needed to boost its confidence that inflation is sustainably moving towards the 2% target.

Federal Reserve Chairman Jerome Powell will face pressure from lawmakers this week. Legislators are eager for the Federal Reserve to cut interest rates, while also expressing dissatisfaction with Powell's plan to increase capital requirements for Wall Street banks.

The Federal Reserve emphasized in its latest Congressional Monetary Policy Report that inflation has significantly eased and the rate of price increases has returned to pre crisis levels.

The monthly growth rate of the core personal consumption expenditure (PCE) price index in the United States in May was 0.1%, the smallest increase in six months. The annual growth rate is 2.6%, reaching a new three-year low.

On Thursday evening, US stock index futures rose slightly, and investors remained cautious before the release of important inflation data, which may affect interest rate expectations.

The data shows that Australia's CPI increased by 4% year-on-year in May, higher than expected by 3.8% and also higher than last month's 3.6%. This is the third consecutive month that inflation in Australia has exceeded expectations.

The decline in consumer confidence, especially in future expectations, indicates that people are becoming more cautious about the market outlook.

UBS analysts suggest that the market may have misjudged the magnitude of future rate cuts by the Federal Reserve and believe that the timing of the first rate cut (whether in September or December) has little impact on the market.

On Tuesday, the Reserve Bank of Australia (RBA) maintained interest rates unchanged as expected by the market. This is the fifth consecutive time that the central bank has maintained interest rates at 4.35%.

According to two price reports that exceeded expectations this week, the inflation indicator favored by the Federal Reserve, PCE, is expected to achieve its smallest increase since November last year. The index will be released later this month.

The latest data from the US Consumer Price Index (CPI) shows that there was no change in the overall CPI in May compared to April. However, the issue of annual inflation still exists, with the overall CPI increasing by 3.3% year-on-year.

The Federal Open Market Committee (FOMC) of the Federal Reserve is expected to maintain its policy target interest rate range at a 23 year high of 5.25% -5.5% at its June meeting.

According to a survey by the Federal Reserve Bank of New York, in May, the US public had mixed views on future inflation trends, with short-term inflation expectations slightly decreasing and long-term inflation expectations slightly increasing.

On Wednesday (June 5th), the Bank of Canada lowered its benchmark overnight interest rate by 25 basis points from 5.0% to 4.75% in June's interest rate resolution, becoming the first G7 country to initiate a rate cutting cycle.

The US employment report on Friday will be the focus of market attention this week, and Federal Reserve officials will study these data before the June meeting. Currently, Federal Reserve officials are in a period of silence.