September inflation is higher than expected, strengthening the reason for the Federal Reserve to raise interest rates again this year

Nick Timiraos stated that potential inflation in September exceeded expectations for the second consecutive month, strengthening the reason for the Federal Reserve to raise interest rates again this year. The core CPI increased by 0.33% month on month in September, higher than the 0.29% in August. Federal Reserve officials recently stated that they do not expect to adjust interest rates at their meeting in two weeks. The final level of interest rate increase depends on whether the pressure brought by the rise in energy prices and the investment boom in artificial intelligence spreads to the overall economy. AI interpretation: Core inflation continues to rise beyond expectations, directly breaking the market's illusion of a rapid decline in inflation. Stubborn price pressures have forced the Federal Reserve to maintain a tightening stance, completely blocking the space for a short-term shift towards easing. The high interest rate environment will exist for a long time to cope with the risk of secondary inflation brought about by the energy and investment boom. This data clarifies the hawkish tone of monetary policy, and the market must reprice high interest rates for a longer window of time.