Inflation came in slightly above expectations and bond investors are demanding more yield to make the bet on the longer term. The trigger was fresh inflation data that showed prices are growing at a level higher than expected. The consumer price index climbed 2.4% year over year in September versus expectations of 2.3%.
U.S. stock futures were pointing to a negative open on Thursday. Investors will be watching for the fallout from Hurricane Milton and are awaiting the release of U.S. inflation data. Federal Reserve officials debated whether to lower interest rates by a quarter or half of a percentage point last month, according to the minutes from the Federal Open Market Committee’s Sept. 17-18 meeting, which were published on Wednesday afternoon.
According to Odaily, Ripple Labs Inc. has submitted a notice of appeal to the United States Court of Appeals for the Second Circuit. This development follows ongoing legal proceedings involving the company.
According to Odaily, BlackRock strategists have indicated in a recent report that the likelihood of rapid interest rate cuts by the Federal Reserve is low due to stable economic growth prospects. They stated, 'We believe there is room for the Federal Reserve to lower rates to around 3.5% or slightly higher by early 2025.'BlackRock also noted that the minutes from the Federal Reserve's September meeting suggest a gradual approach to rate cuts. 'We anticipate a normalization of monetary policy rather than a shift to an accommodative stance,' they added.
According to Odaily, analyst Paul Ashworth stated in a report that considering today's CPI report, the core PCE inflation indicator for September might accelerate from 0.1% in August to 0.2%. However, the annualized rate is expected to be only slightly above the Federal Reserve's 2% target. The PCE data will be released at the end of the month. Additionally, tomorrow's PPI report will help adjust expectations.Ashworth mentioned that if his prediction is accurate, the pace of inflation decline would support a more cautious approach by the Federal Reserve in reducing interest rates by 25 basis points early next month.
According to BlockBeats, on October 10, Federal Reserve's Barkin stated that while inflation has significantly decreased, it is too early to declare victory. He emphasized that inflation is moving in the right direction.
- The New Zealand dollar fell after the Reserve Bank of New Zealand cut interest rates earlier this week, and UBS expects the currency to fall further against the US...
According to Odaily, Whitney Watson, the Global Co-Head of Fixed Income and Liquidity Solutions and Co-Chief Information Officer at Goldman Sachs, stated that the September CPI report was stronger than expected, with core CPI showing an unexpected rise. However, Watson emphasized that labor market data remains the primary focus for the Federal Reserve. He believes that next month's employment data will be a more crucial factor in determining the pace and extent of the Federal Reserve's easing measures.
- The U.S. dollar stabilized near a seven-week high Thursday ahead of a key inflation report, while the euro languished near recent lows. At 04:15 ET (08:15 GMT), the...
According to PANews, the United States' core Consumer Price Index (CPI) for September recorded an annual rate of 3.3%, marking the highest level since June. This figure exceeded market expectations, which had anticipated a 3.2% increase.