After the US core inflation data was higher than expected, traders increased their bets on the Fed's interest rate hike. Currently, the market believes that the probability of raising interest rates next week has reached 90%, and it is fully included in the two interest rate hikes before the end of the year. Interest rate swaps show that traders have raised their bets on rising benchmark interest rates in the coming months, and the market believes that continued price pressure may force policymakers led by Federal Reserve Chairman Kevin Walsh to take action. David Rees, head of global economics at Schroder, said: “The Federal Reserve is lagging behind the situation. It can choose to raise interest rates next week to make America's short-term borrowing costs rise in a manageable manner; it can also choose not to act, but then it may face the risk of an uncontrolled rise in long-term borrowing costs.”

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