Viewpoint: The path of the Federal Reserve's interest rate cuts is still unclear, and the market will continue to fluctuate

ChainCatcher message, the PCE inflation indicator favored by the Federal Reserve will not be released until the end of the month. However, unless there are unforeseen macroeconomic changes, it is almost certain that the Federal Reserve will significantly cut borrowing costs at the September meeting. Nevertheless, it remains difficult to predict the specific actions of policymakers, and this uncertainty suggests that there may be more volatility in the future.

The CME FedWatch Tool shows that the market has not yet decided whether the Federal Reserve will cut rates by 25 or 50 basis points next month, with traders slightly leaning towards a more cautious rate cut. If the Federal Reserve takes more aggressive measures, it could boost the appeal of the retail and consumer sectors. However, if officials opt for a more cautious rate cut, investors might see this as a good time to buy shares of the seven major tech giants. As initial jobless claims and retail sales data are set to be released, the situation will continue to evolve. The Federal Reserve may also take the opportunity at next week's Jackson Hole meeting to signal the direction of interest rates.