According to CoinMeta, analyst William Edward pointed out that after CPI was announced on Wednesday, two scenarios might arise: ① High inflation and a decline in the stock market, which could be the worst-case scenario, leading to stagflation. Investors hope that the weak employment data in July will provide the Federal Reserve with a reason to cut interest rates, resulting in a significant rise in the stock market on Friday. Nevertheless, Walsh's outspoken stance on curbing inflation means that even if employment prospects are weak, a strong CPI report could prompt him to raise interest rates. If inflation exceeds expectations, it will be difficult for the stock market to continue to rise. ② Inflation slows down, and the stock market soars. Although it is unlikely for inflation to fall below the Federal Reserve's 2% target, investors would welcome any data below 3%, as it would indicate that CPI growth is slowing down, allowing the Federal Reserve to easily cut interest rates or at least maintain the status quo. Even if only the latter scenario occurs, it could reverse the already priced-in expectations of interest rate hikes later this year, giving investors some relief.