Analysis: CPI or Stimulate the Federal Reserve to Cut Interest Rates by 50 Basis Points in September

ChainCatcher news, bullish bets in the world's largest bond market have re-emerged ahead of the release of July's Consumer Price Index (CPI) data later on Wednesday, indicating that traders are preparing for further gains as they expect the CPI data to show continued easing of price pressures. Investors betting on a further rise in the U.S. Treasury market are closely watching the upcoming U.S. inflation data, hoping it will further substantiate the case for the Federal Reserve to accelerate its rate cuts. Traders are divided on whether the Fed will cut rates by 25 or 50 basis points in September, with swap trading indicating that the market expects a 36 basis point cut. Overall, they anticipate that the Fed will lower rates by about 1 percentage point over the remainder of 2024. (Jin Ten)