Despite slight fluctuations in the latest PPI data, this is not enough to change expectations for the Federal Reserve to cut interest rates in September. The short-term volatility in the market may be more due to considerations of capital operations rather than significant changes in the economic fundamentals.

In fact, the direction of the Federal Reserve's policy is more dependent on changes within its internal structure rather than a single economic indicator. Recently, there has been a significant change in the composition of the Federal Reserve Board: the departure of a hawkish member has created an opportunity for Trump to nominate a new member, who is likely to support a rate cut policy and is expected to become the chair next year. Additionally, two members who were previously ambiguous in their stance have now clearly expressed support for a rate cut. This means that among the seven-member committee, three have confirmed their support for a rate cut, while among the remaining four, aside from Chair Powell, the other three still belong to the swing group.

The influence of this structural change far exceeds that of individual economic data. More importantly, the recently released non-farm payroll data and consumer price index (CPI) both support the necessity of interest rate cuts. Therefore, even if Chairman Powell personally holds a different opinion, under the dual pressure of the overall committee's inclination and key economic indicators, the possibility of a rate cut in September remains very high.

Overall, investors and market participants should pay more attention to structural changes within the Federal Reserve and overall economic indicators, rather than being swayed by single data points or individual statements. In the current economic environment, policymakers need to weigh multiple factors and make decisions that are most beneficial for the long-term healthy development of the economy.