Institution: August CPI is expected to be sufficient for the Federal Reserve to maintain a hawkish stance

ChainCatcher news, the dollar strengthened ahead of the U.S. August CPI data release. The August CPI data is expected to remain strong enough for the Federal Reserve to maintain a hawkish stance, with only a 25 basis point rate cut next week.

Analysts at Brown Brothers Harriman stated in a report: "We believe there are upside risks to these data." Economists surveyed by The Wall Street Journal expect the 12-month overall CPI to decrease from 2.9% to 2.6%, while core CPI is expected to remain steady at 3.2%. Brown Brothers Harriman noted that an upside surprise in the data "would reduce the likelihood of a significant drop in the federal funds rate in September and support a stronger dollar." (Jin Shi)