The latest US inflation data has attracted widespread attention in the market. The Consumer Price Index for July (CPI) recorded a year-on-year increase of 2.7%, unchanged from the previous value, but lower than the market expectation of 2.8%. However, the core CPI year-on-year rate reached 3.1%, exceeding the expected 3.0% and the previous value of 2.9%. This data indicates that, although overall inflationary pressures have eased, core inflation is still on the rise.

U.S. Treasury Secretary Besant responded to this by calling for the Federal Reserve to begin implementing 'compensatory' rate cuts. Besant believes that interest rates should be lowered by 150 to 175 basis points and suggested that a 50 basis point cut may be implemented first in September. This suggestion is seen as a remedy for the missed policy adjustment opportunities earlier this year.

However, market analysts point out that a single rate cut may not be sufficient to bring significant economic stimulus effects. In contrast, if the Federal Reserve can implement three consecutive rate cuts, it may produce more apparent positive impacts. Some forecasts suggest that from now until the middle of next year, the Federal Reserve may conduct 3 to 5 rate cuts.

Investors and economists are closely watching the speech by Federal Reserve Chairman Powell at the Jackson Hole annual meeting on August 21, hoping to gain more clues about the future direction of monetary policy. However, experts also remind that it is still necessary to carefully assess potential risks when making investment decisions.

These changes in monetary policy may affect the cryptocurrency market, including the price trends of major digital assets such as Bitcoin, Ethereum, and Binance Coin. However, the specific impact still needs further observation and analysis.