Recently, the economic data from the United States has presented a complex situation, with a weak labor market contrasting sharply against persistently high inflation, creating challenges for the Fed's policy-making. Although there are signs of cooling in the job market, investor expectations for an interest rate cut at the Fed's upcoming policy meeting remain unchanged.

The latest economic indicators show that the Consumer Price Index (CPI) rose by 0.4% month-on-month in August, accelerating from 0.2% in July. At the same time, the number of initial jobless claims climbed to 263,000, reaching a nearly four-year high, representing a significant increase from the previous week.

The cooling of the job market, coupled with persistent inflation, poses a trade-off for the Fed in maintaining the dual mandate of full employment and price stability. Most Wall Street analysts believe this complicated situation will create challenges for the Fed's decision-making.

Former Fed economist Claudia Sahm pointed out that this is the most challenging situation for the Fed. She expects the Fed may cut interest rates by 25 basis points at this week's meeting, but also emphasizes that current inflation remains too high.

Other experts share similar views. Collin Martin, a fixed income strategist at Charles Schwab, emphasized that inflation remains high and is even showing signs of worsening. Joe Brusuelas, the chief economist at RSM, mentioned the stubbornness of inflation.

In the face of this economic situation, the Fed needs to find a balance between stimulating employment and curbing inflation. Regardless of the final decision, it will have a profound impact on financial markets and the overall economy. Market participants will closely monitor the Fed's policy signals to assess the future economic direction and investment strategies.