Pepperstone analyst Michael Brown said on October 10th that the US inflation data exceeding expectations will not significantly change the FOMC’s policy outlook. Although the September CPI data was better than expected, the Fed still has two meetings this year to reduce interest rates by 25 basis points. These cuts are expected to continue throughout 2025 until the federal funds rate reaches a neutral level of around 3%. This is a strong ‘Fed put’ that encourages confidence in moving further from the risk curve, and helps to keep the declines in the stock market shallow, viewing them as buying opportunities.
Source: source