The interest rate swap market is no longer fully pricing in September interest rate hike expectations.

Fed Governor Christopher Waller stated that to hit the 2% inflation target, he refers to a broader range of inflation data than just the PCE metric. PCE remains our key reference indicator, and we will continue to rely on it. It’s worth noting that the Fed’s preferred inflation gauge—June’s core PCE data—will be released at 20:30 Beijing time on Thursday. Committee members typically do not “wait for public data to gauge inflation levels”; instead, they already have access to staff estimates based on available information, and FOMC discussions are conducted based on these internal analyses. Current market expectations peg core PCE at a 3.30% year-over-year rise, down from the prior 3.40%. If the data comes in lower than expected, it will ease the urgency for the Fed to raise rates to curb inflation; if it beats expectations, it will reinforce bets on future rate hikes. (Jin10)

According to market data from BIT (bit.com), US-listed storage concept stocks have rebounded. Specific performances include: SanDisk (SNDK) rose 0.89%, Western Digital (WDC) gained 6.29%, Seagate Technology (STX) increased 8.18%, and SK Hynix (SKHY) climbed 3.01%.

Fed Chair Waller said at a press conference that the latest interest rate decision will not be framed as a "pause", and if markets interpret it as such, that is their own judgment. “Today’s decision is just the beginning of the story, not the end,” Waller stated. The Federal Reserve is closely monitoring the impact of various shocks on underlying inflation and assessing whether their scope is expanding, adding that it is currently conducting a rigorous review of economic conditions. He emphasized that the U.S. labor market is performing well, and the Fed is “doing quite well” in achieving full employment, noting that its dual mandate has no conflicts and neither mandate is being overlooked. Regarding the upcoming Jackson Hole Economic Policy Symposium, Waller said he has not yet started preparing his speech, adding that he hopes to discuss major policy topics at the event and will further study relevant issues with his working group ahead of the meeting.

Fed Chair Waller stated at a press conference: "Today's three dissenting votes do not fully reflect the substance of the discussions; the decision we reached was backed by the vast majority. The June core CPI data had little impact on the policy decision. We will communicate with the inflation working group in the coming weeks. We have obtained some encouraging inflation data, which we will closely monitor moving forward. What matters is the inflation trend. We will face important decisions in the period ahead." (Jinshi)

According to Bitget's market data, spot gold has risen above $4,100 per ounce, adding nearly $60 in gains since the interest rate decision was announced.

Federal Reserve Chair Waller stated that discussions at the interest rate-setting meeting were harmonious. The economy has demonstrated impressive resilience. The committee refrained from issuing forecasts, is firmly committed to achieving price stability, has no flexible inflation target, and its sole goal is a 2% inflation rate. (Jinshi)