Daniela Hasson, Senior Market Analyst at Capital.com, stated that the overall US CPI for September is expected to accelerate to an annual rate of 3.7%, with core CPI expected to be around 2.5%. The probability of the Federal Reserve remaining inactive in October based on market pricing is about 80%, and the performance of core data will affect the Federal Reserve's monetary policy expectations. (Source: Jin Shi)
AI interpretation: Inflation data shows an accelerating rebound trend, directly challenging the market's optimistic expectation of price decline. The stickiness of core inflation has become a core obstacle to the shift of monetary policy, forcing the Federal Reserve to maintain a tightening stance. The current market's unchanged pricing of interest rates reflects a deep consensus on the high interest rate environment. This data will further suppress expectations of interest rate cuts and strengthen the policy logic of the Federal Reserve to maintain high interest rates for a longer period of time.
