Group 1 - The core concern is the resurgence of inflation risks in the U.S. economy, driven by a return to peak levels of M2 money supply and rising inflation indicators [1][9][11] - Economists warn that further monetary easing could replicate the inflationary cycles of the 1970s, leading to severe economic consequences [2][5][16] - The Producer Price Index (PPI) has reached a high of 3.3%, indicating significant wholesale cost pressures that may translate to consumer prices [3][15] Group 2 - The M2 money supply, which surged during the COVID-19 pandemic, has returned to historical peak levels, with an annual growth rate approaching 5%, a level historically associated with inflation risks [7][9] - Recent price data supports inflation concerns, with core PPI rising 33.3% since January 2017, reflecting ongoing upward pressure on consumer goods and services [13][15] - The lessons from the 1970s highlight the dangers of premature monetary policy easing, which could lead to repeated inflationary waves and economic turmoil [16][18] Group 3 - The current inflation backdrop has intensified the policy divergence between the White House and the Federal Reserve, with political pressures advocating for lower interest rates [19][20] - The potential for renewed inflation could undermine the credibility of the current administration, linking it to past economic policies [20] - Observers view the Fed Chair Powell's resistance to rate cuts as a responsible stance amid rising inflation concerns, with fears that a successor may prioritize rate reductions [20]

Group 1 - The core point of the article is the significant increase in the U.S. Producer Price Index (PPI) for July, which saw its largest rise in three years, with a year-on-year increase of 3.3% compared to 2.3% in June, and a month-on-month increase of 0.9%, far exceeding market expectations of 0.2% [1][3] - The core PPI, excluding food and energy, also rose sharply, with a year-on-year increase of 3.7%, the highest since February, and a month-on-month increase of 0.9%, the highest since April 2022 [3][5] - The surge in PPI has led to a decline in U.S. stock index futures, with the Nasdaq futures down 0.36%, S&P 500 down 0.35%, and Dow futures down 0.29%, while the dollar index rose by 0.21% [3][5] Group 2 - A key driver of the PPI increase is the rise in service costs, which increased by 1.1% in July, the largest increase since March 2022, and wholesale and retail profit margins jumped by 2% due to mechanical equipment wholesale [3][5] - The article highlights that the increase in PPI has dampened expectations for a rate cut by the Federal Reserve in September, as traders are now less confident in the likelihood of a rate cut due to the unexpected inflation data [5][6] - There is a lack of consensus among Federal Reserve officials regarding interest rate cuts, with some advocating for caution until inflation is fully under control, while others support immediate cuts [6][8]