Lates News

Although both the U.S. September Consumer Price Index (CPI) and Producer Price Index (PPI) rose more than expected, AI infrastructure buildout has not shown clear signs of slowing, and energy prices remain elevated, market participants still expect the Federal Reserve to keep interest rates in the target range of 3.75% to 4.00% on Wednesday. Previously, several senior Fed officials delivered remarks signaling no rush to raise rates this month. Oxford Economics noted: "Williams and Jefferson made those remarks before the upside inflation surprises emerged. We do not think their comments were a channel through which Warsh indirectly conveyed views to the market, as may have occurred during the tenures of several past Fed chairs." If the Fed decides to hold rates steady, officials such as Cleveland Fed President Hammack and Dallas Fed President Logan may vote against the decision. Both have previously said monetary policy still needs further tightening.