Fed Decision Week Brings Uncertainty to Markets

The US economy is bracing for the Federal Reserve's rate decision this week. The latest data shows that core inflation accelerated in August, rising 2.4% annually and 0.3% monthly. While annual core inflation eased from July's 2.5%, its monthly pace picked up from 0.2% to 0.3%. This uneven progress may influence the Fed's decision.

The Federal Reserve meets on September 15-16 US time and will release economic projections. The decision is scheduled for September 17 at 02:00 Beijing time. Lower annual core inflation does not necessarily mean near-term price pressure has disappeared, particularly for technology stocks and crypto assets. Their valuations may face a limited adjustment or more persistent pressure.

Commodities are also on high alert due to renewed energy supply concerns. Attacks on Saudi infrastructure and Gulf shipping have brought export security back into focus. If energy inflation spreads, equities could face higher operating costs and tighter monetary policy simultaneously.