The latest published data on the U.S. Producer Price Index (PPI) exceeded market expectations, indicating that upstream inflationary pressures are more severe than previously estimated. This data has a significant impact on the Federal Reserve's monetary policy decisions, particularly regarding the timing and magnitude of interest rate cuts.

The rise in PPI indicates an increase in operational costs for businesses, and this pressure may be transmitted downstream along the supply chain, subsequently affecting the Consumer Price Index (CPI). If the CPI is impacted, the inflation level may struggle to decrease or even rebound, which will make the Federal Reserve more cautious in its decision to cut interest rates.

The Federal Reserve's biggest concern is that inflation will rebound after loosening monetary policy. Therefore, such unexpectedly strong economic data may lead the Fed to delay the timing of interest rate cuts or reduce the magnitude of the cuts in order to prevent inflation from rising again.

However, considering the non-farm employment data and CPI data, there is still a significant possibility that the Federal Reserve will implement a rate cut in September. However, the rate cut may remain at 25 basis points, rather than the 50 basis points previously expected by the market.

From the perspective of the cryptocurrency market, the gap at the 118405 level for Bitcoin futures has been filled. Market leaders have utilized relevant news to quickly drive up prices, completing this technical move. This market performance is basically in line with expectations, but investors still need to remain patient, as the overall market trend has not fundamentally changed.

Current economic data and market trends are constantly evolving. Investors need to closely monitor subsequent economic indicators and policy signals to better grasp market movements and investment opportunities.