**[Bitunix Analyst: U.S. Debt, Inflation, and Japan's Rate Hike Pressure Intertwine, Global Assets Face High-Interest Rate Repricing]** BlockBeats News, August 26 — The U.S. economy is exhibiting a contradictory pattern of "cooling demand and persistently high inflation." U.S. consumer confidence has dropped to its lowest point this year, while July new home sales fell to a six-month low, with high mortgage rates continuing to suppress housing demand. However, Federal Reserve officials remain vigilant about inflation. Collins stated that if there is no evidence of sustained inflation decline, policy may need to "tighten as soon as possible." Barkin warned that as debt continues to accumulate, a "moment of reckoning" may eventually occur when investors stop absorbing U.S. debt. Additionally, four out of the twelve regional Federal Reserve banks supported raising the discount rate in July, reflecting heated internal discussions within the Fed regarding the degree of policy tightening. Tonight's release of July's PCE data is therefore particularly critical. The market expects the core PCE annual growth rate to remain at 3.3% and the monthly growth rate at 0.2%. If the data exceeds expectations, it will further strengthen the likelihood of maintaining high interest rates or even raising rates in September. However, the market currently still anticipates a higher probability of no action in September. The real focus lies in whether inflation will develop new stickiness due to tariffs, energy costs, and AI infrastructure expenses. Notably, the PCE statistical methodology will undergo significant adjustments at the end of September, and subsequent data may face retrospective revisions, adding complexity to market interpretations of inflation trends. On the international front, Japan's inflation and rate hike expectations are simultaneously heating up, further increasing pressure on global bond markets. Australia's July core inflation also exceeded expectations, raising the risk of another rate hike by the RBA. This indicates that global central banks are not merely dealing with weak demand but rather an economic slowdown where structural inflation, fiscal deficits, and energy costs continue to limit room for rate cuts. AI investment remains a key driver of global growth for now, but if long-term U.S. Treasury yields, Japanese capital repatriation, and global policy rates remain elevated simultaneously, rising funding costs could ultimately exert pressure on high-valuation assets such as stocks and crypto assets.