TechFlow news, October 10 — According to Jinshi Data, Pepperstone analyst Michael Brown commented on the latest U.S. September Consumer Price Index (CPI) data released today. Despite the CPI figure coming in slightly above expectations, Brown believes this is unlikely to materially alter the Federal Open Market Committee’s (FOMC) policy outlook.
Brown noted: "Although the September employment report was strong, given the ongoing relief in inflationary pressures, we expect the FOMC to cut rates by 25 basis points at each of its two remaining meetings this year. This pace of easing could extend into 2025, until the federal funds rate declines to a neutral level of around 3% by next summer."
He further explained: "This essentially constitutes a 'Fed put option,' persisting in a strong and flexible form. It not only gives market participants greater confidence to move further away from risk aversion, but also keeps equity market pullbacks relatively limited—often viewed as buying opportunities."
