CICC's latest report anticipates a 25 basis point rate cut by the Federal Reserve in October due to weak employment data. However, the report warns that rising inflation will make further rate cuts increasingly difficult, limiting the scope for monetary easing. The report highlights that the core issue in the U.S. economy is not a lack of demand but rising costs. Excessive monetary easing could exacerbate inflation and push the economy towards a 'stagflation-like' scenario.