Nick Timiraos: Inflationary data in July eased interest rate hikes and there were internal differences within the Fed

Nick Timiraos stated that the July inflation report was largely consistent with market expectations and eased the pressure on the Fed to raise interest rates next month. Some Federal Reserve officials considered it necessary to maintain higher interest rates, while others suggested that they might join the Eagle camps if more data were to make current projections difficult to sustain. The current level of interest rates is considered to be sufficiently restrictive, and high inflation results from external shocks and a surge in demand generated by the build-up of artificial intelligence. The data confirm that inflationary pressures are manageable and directly eliminate the need for a radical increase in the Fed in the short term. The market sees this as a positive signal of a policy shift, and the interest rate environment will be maintained at current highs to consolidate anti-inflation gains。