Federal Reserve “Speaker”: The sound of the falcon is still alive when inflation cools off the increase in interest pressure

On 12 August, Nick Timiraos, the Fed's microphone, stated: “Inflation reports in July are largely consistent with market expectations, easing the Fed's interest rate hike next month. Wall Street is particularly concerned about the CPI data released today, as Federal Reserve officials also signal that they are following the data more closely. Over the past year, Federal Reserve officials have been predicting that inflation will fall back to the target level of 2 per cent without further interest rate hikes, but today some officials consider it necessary to maintain higher interest rates. Other officials indicated that if more data were to make current projections unsustainable, they could also join the Eagle minority. This projection is based on the view that the current level of interest rates is already sufficiently restrictive, and that high inflation is due to external shocks rather than to too loose monetary policy. Previously, it had been judged that tariffs would only push up costs once and the impact would gradually recede; as tensions in the Middle East eased, energy prices would also follow the fall in crude oil prices. But the reality is that these shocks persist and are now compounded by a surge in demand from the build-up of artificial intelligence, which is pushing up the price of technological equipment and software.” Kim Xian