Wall Street has serious differences over whether the Federal Reserve will raise interest rates next month. However, there is no dispute: the inflation report released on Wednesday will largely influence the Federal Reserve's next steps. According to the swap market trading situation, traders currently expect the probability that the Fed will raise interest rates by 25 basis points is about 50%. Molly Brooks, an American interest rate strategist at TD Securities, said that if the inflation data is higher than expected, the probability of interest rate hikes may rise sharply; if the data weakens again, it will give policymakers room to continue to wait and see. “We think this data is critical to the September decision,” Brooks said. She added that the market reaction may be asymmetrical. The impact of higher than expected inflation on the probability of interest rate hikes may be far greater than the impact of lower than expected inflation. US Treasury bonds did not change much on Wednesday while the market waited for the inflation report. The benchmark 10-year US Treasury yield fell 1 basis point to 4.68%, and the 30-year yield fell to 5.23%.

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