The CPU can only understand machine code indeed. For interpreted programs, the ultimate goal of an interpreter is to "interpret" the program code into machine code. However, usually a modern interpreted language does not interpret human code directly because it is too inefficient.
The Python interpreter first reads the human code and optimizes it to some intermediate code before interpreting it into machine code. That's why you always need another program to run a Python script, unlike in C++ where you can run the compiled executable of your code directly. For example, c:\Python27\python.exe
or /usr/bin/python
.