The US July CPI report is out "Prices hit a new high in June", Trump pressures Powell: Tariffs did not exacerbate inflation, Fed needs to cut interest rates in September.

The Bureau of Labor Statistics (BLS) released the July Consumer Price Index (CPI) report yesterday (12) evening, and after the release of the data, the market once again increased its bets on a one-yard interest rate cut in September, while US President Trump once again called on Fed Chairman Jerome Powell to cut interest rates. (Synopsis: Fed Daley: The time to cut interest rates is approaching, and it may be more than twice this year (the probability is nearly 95% in September)) (Background supplement: Market Watch" Trump pushes crypto Fed governors, September interest rate cut is a foregone conclusion? The US Bureau of Labor Statistics (BLS) released the July Consumer Price Index (CPI) report yesterday (12) evening, revealing the latest developments in the trend of inflation in the United States. According to the report, the overall CPI annual growth rate in July was 2.7%, unchanged from June, but lower than market expectations of 2.8%; The monthly increase was 0.2%, slightly lower than the 0.3% in June. Core CPI (excluding food and energy) rose to 3.1% y/y, up from 2.9% in June and the highest in nearly six months, and 0.3% m/m, up from 0.2% in June. September rate cut expectations rise Although US Federal Reserve Chairman Jerome Powell has repeatedly stressed that interest rate cuts will not be considered until the impact of tariffs on prices is determined, market expectations for September rate cuts have heated up significantly after the release of the July CPI data. First of all, Wall Street Journal reporter Nick Timiraos, known as the "Fed sounding board", said on the X platform that although the July CPI data is not a "no inflation" result, the level of inflation may not be enough to prevent the September rate cut. In addition, Tiffany Wilding, an economist at the Pacific Investment Management Company (PIMCO), further pointed out that the pressures related to tariffs are mainly concentrated in the commodity sector, and the transmission process is slow, while inflationary pressures in other areas look very manageable. Wilding believes that this is a positive signal for the Fed that the inflationary environment is conducive to adjusting monetary policy. At the same time, the market's confidence in the rate cut is also reflected in the forecast market. On both Polymarket and Kalshi, betting on the Fed's September rate cut is more than 80%, although the market generally believes that the rate cut could be 25 basis points rather than the more aggressive 50 basis points. Finally, according to the CME Watch tool, the market currently believes that the probability that the Fed will cut interest rates by one yard in September is as high as 94%. Trump: Tariffs don't exacerbate inflation, sue Ball After the release of the July CPI report, US President Donald Trump also posted on Truth Social, saying that Ball must now cut interest rates, and said that he was considering allowing a lawsuit against Ball to accuse him of extravagantly wasting billions of dollars on Fed building decorations: Ball is too late, and now interest rates must be lowered. He was always "too late" to cause immeasurable damage. Fortunately, the economy is doing very well, and we have broken through the limits of Power and that complacent Fed Commission. However, I am considering allowing a major lawsuit against Ball for his poor performance and extreme incompetence in managing the construction of the Fed building. The project, which cost $3 billion, was supposed to be just a $50 million renovation project. It's outrageous! Subsequently, Trump continued to emphasize that tariffs have generated huge revenues for the United States, not greater inflationary pressures: Tariffs have brought trillions of dollars in revenue to the United States, and they have brought amazing benefits to our country, to our stock market, to our overall wealth, and to just about every other thing. It turns out that even at this stage, the tariffs are not causing inflation or any other problem for the United States, but rather have flooded our treasury with cash. In addition, the data shows that in most cases, consumers don't even have to pay these tariffs, because this is mainly borne by businesses and governments, many of which are paid by foreign businesses and governments. But David Solomon and Goldman Sachs refused to give the recognition they deserved. Their predictions about the market impact and the tariffs themselves long ago were as wrong as they were on many other things. I think David should go to a new economist, or maybe he should focus on DJ instead of running a major financial institution. U.S. stocks rise After the CPI report, U.S. stocks rose collectively, with the four major indexes showing: Dow Jones Industrial Average: up 1.09%, or 480 points, at 44,448.84 S&P 500: up 0.68%, or 41 points, at 6,415.14 Nasdaq: up 0.61%, or 123.75 points, at 21,502.94 Philadelphia Semiconductor Index: up 1.73%, or 98.35 points, at 5,770.89 Ethereum breakout $4,600 In the cryptocurrency market, Ethereum moved strongly after the CPI announcement, breaking through $4,600 in one fell swoop, hitting a new high since January 2022 and less than $300 away from its all-time high at the end of 2021. Bitcoin is relatively weak, still oscillating in a narrow range around $120,000, falling slightly below the 119,300 level in the morning. Related reports Trump shouted economic data fraud "to cut interest rates immediately": within three days, the new chairman of the Federal Reserve and the new director of labor statistics Powell will not cut interest rates! However, there is a difference in decision-making within the Fed, bitcoin rebounded after falling below 116,000, and Ethereum stood back to $3,800 The Fed has no hope of cutting interest rates in July, what are the other highlights of the FOMC meeting? Internal disagreements within the Fed, Ball versus Trump. "The US CPI report for July released a "new high in June", Trump pressured Powell: tariffs did not exacerbate inflation, Fed will cut interest rates in September" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Blockchain News Media".