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The non-farm payroll report may have set the tone for interest rate cuts, while high CPI makes it difficult to change expectations.
On September 5, analyst Chris Anstey stated that the market has fully anticipated that the Fed will cut interest rates in two weeks before the non-farm report is released. To make traders abandon this expectation, it may require an exceptionally strong employment rise data, along with a high CPI report. This employment report may have already made the rate cut a certainty, even if the upcoming CPI shows increasing inflation.