The market believes that the Fed is almost certain to cut interest rates in September, inflation data and Powell's remarks reinforcing expectations.

The latest data shows that inflation in the United States rose moderately in July. In addition, Treasury Secretary Scott Benson mentioned the possibility of a significant 50 basis point rate cut due to recent weak employment data. The market believes that the probability of a rate cut in September by the Federal Reserve is close to 100%. According to calculations by the CME Group's FedWatch tool, after the release of the July CPI data and Benson's comments, traders in the federal funds rate market estimated on Wednesday that there is a 99.9% probability of a 25 basis point rate cut at the Fed's September 16-17 meeting.