Analyst: Benign inflation data solidify the scenario of a 25 basis point rate cut by the Fed in September

The data from Jin10 on August 30th showed that analysts believe if the Jackson Hole meeting essentially confirmed the Fed’s preparation for a rate cut in September, then Friday’s inflation data would consolidate a scenario of a 25 basis point rate cut, rather than 50 basis points. The data performance basically met expectations, with almost no change in yields, and the market still betting on a smaller rate cut next month. Traders still expect a significant rate cut in November or December, but if prices continue to gradually cool without larger-than-expected declines, the market may reconsider this expectation.