Thierry Weizmann, Global Strategist for Foreign Exchange and Interest Rates at Macquarie Group, stated that the US CPI is expected to accelerate in September, but it will not prompt the Federal Reserve to raise interest rates in October. This report will not change the Federal Reserve's decision to raise interest rates this month. Several Federal Reserve officials tend to adopt a staggered pace of interest rate hikes rather than consecutive meetings. According to a survey by The Wall Street Journal, analysts expect the overall year-on-year growth rate of US CPI in September to rise from 3.4% in August to 3.6%. Market pricing shows that the probability of the Federal Reserve raising interest rates at the October 28th meeting is about 19%. (Source: Jin Shi)
AI interpretation: Inflation data shows an accelerating upward trend, directly challenging the expectation of price decline. This sticky behavior has forced the Federal Reserve to maintain a tightening stance, completely blocking any space for policy shifts in the short term. The market's pricing of interest rate hikes will be adjusted accordingly, and the duration of the high interest rate environment will be further extended. This data highlights the difficulty of the current anti inflation task, and financial markets will reassess asset pricing logic to adapt to longer-term interest rate pressures.
