Analysis: CPI may stimulate the Fed to cut interest rates by 50 basis points in September

Odaily Odaily News: Bullish bets in the world's largest bond market have re-emerged ahead of the release of July Consumer Price Index (CPI) data later on Wednesday, meaning traders are preparing for further gains as they expect CPI data to show that price pressures continue to decline. Investors betting on further gains in the U.S. Treasury market are watching upcoming U.S. inflation data, which they hope will further confirm the Federal Reserve's reasons for accelerating its pace of interest rate cuts. Traders are divided over whether the Fed will cut interest rates by 25 basis points or 50 basis points in September, with swaps showing that the market expects the Fed to cut interest rates by 36 basis points in September. Overall, they expect the Fed to cut interest rates by about 1 percentage point over the remainder of 2024. (Jinshi)