The possibility of further interest rate cuts in October and December cannot be ruled out after the CPI is released

Analyst Ira stated that while core US data met expectations, the CPI data exceeded headline figures, solidifying the plan for a 25 basis point rate cut next week. Further cuts in October and December remain possible. For the long end of the yield curve, today's data may slightly push up short-term inflation breakevens. According to CME's "Fed Watch," after the CPI release, the probability of a 25 basis point rate cut in September is 90.9%, while the probability of a 50 basis point cut is 9.1% (compared to 8% before the CPI release). The cumulative probability of a 25 basis point rate cut in October is 7.3%, the probability of a 50 basis point cut is 84.3%, and the probability of a 75 basis point cut is 8.4%.