The consumer price index data to be released at 8:30 tonight, (CPI), may become a key factor hindering the Fed from cutting interest rates. Currently, the market generally expects a rise in prices, mainly due to the tax increase policies implemented by the government, which ultimately results in consumers bearing the additional costs.

The rise in prices directly reflects the increase in inflation pressure, which is usually contrary to interest rate cut policies. However, at the same time, recent employment data shows that the US economy is slowing down, which should support the argument for interest rate cuts. This contradictory economic signal complicates decision-making.

On one hand, the rise in CPI data may require maintaining the current interest rate level or even considering a rate hike to curb inflation; on the other hand, the weak labor market calls for a rate cut to stimulate economic growth. The confrontation between these two forces puts economic policy-making in a dilemma.

In light of the current uncertainty in the situation, investors should act cautiously after the data is released tonight. In the face of these contradictory economic indicators, adopting a prudent investment strategy and appropriately reducing positions may be a wise choice. How the Fed finds a balance between inflationary pressures and economic growth in the future will become the focus of market attention.