The Federal Reserve raised interest rates by 25 basis points in September, and the market expects a pause in interest rate hikes in October

The Federal Reserve raised interest rates by 25 basis points at its September meeting, bringing the interest rate range to 3.75% -4.00%. The current interest rate market has pre priced the expectation of suspending interest rate hikes in October. The market is concerned about whether core CPI and service inflation have fallen back. If core inflation is sticky, the market may continue to tighten after trading is suspended. AI interpretation: The precise implementation of this interest rate hike decision marks a critical observation window period for the tightening cycle of monetary policy. The rise in interest rates has directly intensified the pressure on financing costs, forcing the market to reassess asset pricing logic. The current expectation of suspending interest rate hikes reflects the cautious attitude of policy makers towards the risk of economic overheating. The stickiness of core inflation determines the severity of the subsequent policy path, and the market has shifted its focus to a deep game of how fast inflation will fall.