Federal Reserve Governor Jefferson: No Need to Hurry to Further Cut Interest Rates, Strong Economy Makes Caution Appropriate

Market analysis notes that falling energy prices helped cool inflation in July, with gasoline prices dropping 2.9% month-on-month and fuel oil down 1.7%. However, this reprieve may be temporary. Recent rebounds in crude oil prices and strong refining margins have begun driving up fuel costs. The current average U.S. gasoline price stands at $4.03 per gallon, a notable increase from $3.87 a month earlier, suggesting energy could exert fresh upward pressure on August inflation.

Following the release of U.S. July CPI data, the U.S. Dollar Index rose roughly 10 points in the short term and is now at 99.85.

Following the release of CPI data, cryptocurrencies, gold, and U.S. equities all saw short-term moves of first declining then rallying. Per HTX market data, Bitcoin quickly dropped from $64,452 to near the $64,000 level after the data was published, before rebounding again. As of press time, Bitcoin is trading at $64,146.37, with a 24-hour gain of 0.83%. According to Bitget data, U.S. stock futures dipped slightly in the short term before surging back, with Nasdaq 100 futures extending their rise to 0.9%. Spot gold fell roughly $30 in the short run, then climbed more than $20, and is now trading at $4,412.38 per ounce. Initial market analysis notes that the July U.S. core inflation figure came in mild, which may ease pressure on the Federal Reserve to raise interest rates.

Following the release of CPI data, investors have scaled back their bets on a September interest rate hike. Market pricing indicates a 45% probability that the Federal Reserve will raise rates in September.

Standard Chartered’s subsidiary Anchorpoint officially launched the first phase of its Hong Kong dollar stablecoin HKDAP on Wednesday, opening test access to institutional distributors and professional investors. Anchorpoint, a joint venture formed by Standard Chartered, HKT, and Animoca Brands, secured a stablecoin issuance license from the Hong Kong Monetary Authority (HKMA) in April this year, making it one of the first institutions to obtain such approval.

US July unadjusted CPI rose 3.4% year-over-year, matching the 3.4% forecast and down from the prior 3.50%. Separately, US July unadjusted core CPI came in at 2.5% year-over-year, in line with the 2.50% expectation and lower than the prior 2.60%. US July seasonally adjusted core CPI posted a 0.2% month-over-month increase, meeting the 0.20% forecast, unchanged from the prior 0.00%.