U.S. September CPI beats expectations, may impact Fed policy.
According to the latest data from the U.S. Department of Labor,si strength foreign exchange investment platform the Consumer Price Index (CPI) rose by 0.2% in September from the previous month, matching the increase in August and rising 2.4% year-on-year, exceeding economists' expectations of 2.3%. Although the increase is relatively moderate, it indicates that the cooling of inflation is still slower than expected, which may impact the Federal Reserve's monetary policy decisions in the coming months. The financial markets responded significantly, with U.S. stock index futures falling by 0.35%. In the bond market, the yield on 10-year Treasury bonds dropped to 4.667%, while the yield on 2-year Treasury bonds fell to 3.9908%. The dollar index declined by 0.09%, with the euro slightly rising by 0.02%. Market economists believe that inflation higher than expected may mean that the Federal Reserve will not rush to significantly cut rates in the short term. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, stated that the stubbornness of inflation might lead the Federal Reserve to only cut rates once by the end of the year, instead of significantly easing monetary policy. Meanwhile, Brian Jacobsen, chief economist at Annex Wealth Management in Wisconsin, noted that rising food and housing costs, along with the rebound in energy prices, might further push up inflation in the coming months, putting additional pressure on the Federal Reserve. The issue of inflation is particularly concerning because the Federal Reserve needs to carefully balance combating inflation with maintaining economic growth. Against the backdrop of continued rises in food, housing, and energy costs, markets worry that future inflationary pressures may increase further, posing greater challenges for the Federal Reserve in deciding future monetary policy. The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
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