Markets had just breathed a sigh of relief when two hawkish Federal Reserve officials issued fresh warnings: inflation is far from over, and they support moderate rate hikes.

Cooling U.S. inflation data has spurred markets to heavily bet on the Federal Reserve pausing rate hikes, but policymakers are sending markedly different signals. Dallas Fed President Logan and Kansas City Fed President Schmid have both warned that a single month of improved inflation is insufficient to declare victory, and if prices fail to sustainably decline, further policy tightening could still be on the table.

Golden10 Data07:37

Leverage Collapse and Bubble Fears Erupt! Global AI Hardware Tech Sector Plunges into Turmoil—Is a Bear Market Here?

The global sell-off in AI technology stocks is intensifying.

Gelonghui Finance8minutes ago

Stop Worrying About AI and Focus on the Rest of the Market -- Barrons.com

Barron's27minutes ago

U.S. equities still have 'room for deleveraging'! JPMorgan: It will take three months to return to pre-April levels.

JPMorgan believes that the deleveraging process in U.S. equities, which began in June, is still ongoing. There remains further room for deleveraging in leveraged equity ETFs, options, and margin accounts. It is expected to take approximately three more months of volatile trading before relevant indicators return to levels seen prior to April. However, from a longer-term perspective, once deleveraging pressures subside, the market could receive structural support.

wallstreetcn27minutes ago

DoubleLine CIO: Wallsh is not a 'dove in hawk's clothing'; the bond market has already done the Fed's tightening work.

Jeffrey Sherman, CIO of DoubleLine, believes the bond market has quietly done part of the Fed's tightening work—yield curves have steepened and markets have begun pricing in the possibility of rate hikes, potentially allowing incoming Fed Chair Kevin Warsh to remain on hold. Meanwhile, core CPI recorded its first month-over-month decline since 2020 in June, and one-year inflation swaps briefly fell below 2%; however, AI-driven demand and wealth effects from equities continue to push up core PCE, casting doubt on the 'investment-grade' narrative in private credit, while risks in CCC-rated assets are brewing beneath the surface.

wallstreetcn12:50

To Hike Rates or Stand Pat? As Hawkish Rhetoric Mounts, the Fed's 'Second-in-Command' Speaks Out

① Federal Reserve Vice Chair Jefferson stated on Thursday that if inflation does not cool down soon, interest rate hikes should be considered, though he also noted that the current stance of monetary policy is appropriate; ② Meanwhile, some Federal Reserve officials believe rate hikes are needed immediately, most notably Dallas Fed President Logan, who made such remarks earlier on Thursday; ③ This signals that a vigorous debate is likely to unfold within the Fed at its upcoming policy meeting in two weeks.

cls.cn12:29