Despite rising inflation, investors remain optimistic that the Federal Reserve will cut interest rates in September. If monthly inflation is at or below 0.3%, the market generally expects a Fed rate cut; if inflation data rises above this level, these hopes could be dashed, potentially leading to market turmoil. JPMorgan Chase believes the "Fed put" is in full effect. Analyst Fabio Bassi and his colleagues stated, "We expect moderate weakness in macroeconomic data, but this will be enough to prompt a swift Fed response in September."

According to the ING analyst consensus, CPI inflation will rise slightly by 0.3% to 3% year-on-year, a small enough increase for the Federal Reserve to overlook and opt for a rate cut. The unexpectedly weak August 1st jobs report has led markets to expect the Fed to be more willing to overlook a small increase in inflation in order to support the economy with newly cheap money. (Jinshi)