Analyst: Market expects Fed to hold rates unchanged as inflation pressures persist

TechFlow reported on October 28 that although U.S. September CPI and PPI increases both exceeded expectations, AI infrastructure buildout has not shown clear signs of slowing, and energy prices remain elevated, market participants still expect the Fed to hold rates within the 3.75% to 4.00% target range on Wednesday. Earlier, several senior Fed officials spoke, signaling no urgency to raise rates this month.

Oxford Economics noted: "When Williams and Jefferson made the above remarks, the unexpectedly high inflation data had not yet emerged. We do not believe their statements were a channel through which Warsh indirectly conveyed his views to the market, as may have occurred under previous Fed chairs." If the Fed decides to hold rates unchanged, officials such as Cleveland Fed President Hammack and Dallas Fed President Logan may cast dissenting votes. Both had previously said monetary policy still needs further tightening. (Jin10)

Source: TechFlow