CICC: Fed expected to hike rates by 25 basis points at September 16 meeting

According to CICC (China International Capital Corporation), the U.S. August CPI rose 0.4% month-on-month and 3.4% year-on-year, while core CPI increased 0.3% month-on-month and 2.4% year-on-year, slightly exceeding market expectations. CICC attributes the rebound in inflation to rising energy costs, telecommunications price hikes, and persistent inflationary pressure from AI. Based on this report, CICC predicts the Federal Reserve will raise interest rates by 25 basis points at its September 16 meeting and may signal a prolonged tightening cycle by adjusting its economic projections and interest rate path.