At 20:30 tonight, the highly anticipated U.S. August Consumer Price Index (CPI) data will be released. The market currently generally expects a slight rise in this data. If the actual data exceeds expectations, it will undoubtedly pose a new challenge for Federal Reserve Chairman Powell.

For a long time, the Federal Reserve has been committed to controlling the inflation rate at a target level of 2%. Powell has previously hinted that he might consider lowering interest rates. However, if inflation data exceeds expectations, the Federal Reserve will face a dilemma in its decision-making regarding interest rate cuts. Choosing to lower rates could lead to uncontrollable inflationary pressures; but if they do not lower rates, it may further worsen the weakness in the labor market, and the economy may continue to languish due to a lack of stimulus.

It is worth noting that this CPI report not only concerns the policy direction of the Federal Reserve but will also have a profound impact on global financial markets. Whether it is the stock or bond markets, or commodities such as gold and foreign exchange, significant fluctuations may occur due to this data.

Therefore, investors need to closely monitor the data release tonight. This is not just an economic indicator, but also a bellwether for the future direction of the market. Regardless of the outcome, we will witness an important moment that could change the financial landscape.