Next week's macroeconomic outlook: interest rate cuts are no longer a problem, and CPI data may stimulate a 50 basis point drop

PANews reported on September 6th that this week saw volatile financial markets. Expectations of a Federal Reserve rate cut rose, fueled by disappointing US non-farm payroll data. US stocks and cryptocurrencies remained volatile, but next week could prove crucial. Looking ahead, investors will be closely watching CPI data, which could influence the Fed's rate cut path, the European Central Bank's interest rate decision, and the release of key candidates for the next Fed chair. The following are key market observations for the coming week:

At 23:00 on Monday, the New York Fed’s one-year inflation forecast for August;

At 22:00 on Tuesday, the preliminary value of the benchmark change in non-farm employment in the United States in 2025 will be released;

At 09:30 on Wednesday, China’s August CPI annual rate will be released;

At 20:30 on Wednesday, the U.S. PPI data for August will be released;

At 20:15 on Thursday, the European Central Bank announced its interest rate decision;

At 20:30 on Thursday, the US August CPI data and the number of initial jobless claims in the US for the week ending September 6 will be released;

At 20:45 on Thursday, European Central Bank President Lagarde held a monetary policy press conference;

At 22:00 on Friday, the preliminary value of the US one-year inflation rate forecast for September and the preliminary value of the University of Michigan Consumer Confidence Index for September will be released.

A quarter-point rate cut by the Federal Reserve at its September meeting is all but certain. Less uncertain is the pace of subsequent cuts, with some market pundits betting on a surprise 50-basis-point cut on September 17.