Analysts: September CPI is unlikely to change FOMC policy outlook

Michael Brown, an analyst at Pepperstone, said that despite the higher-than-expected U.S. inflation data, the September CPI data seemed unlikely to materially change the FOMC's policy outlook. He pointed out that "despite the stronger-than-expected September employment report and given the continued progress of deflation, it is expected that the remaining two FOMC meetings this year will each cut interest rates by 25 basis points, and this rate cut rhythm may continue until 2025, until the federal funds rate returns to a neutral level of around 3% next summer. In essence, this is the 'Federal Reserve Put Option', which persists in a strong and flexible form and continues to provide participants with the confidence to move further away from the risk curve, while also keeping the stock market's decline relatively shallow and seen as a buying opportunity." (Jinshi)