A Higher U.S. Inflation Reading Unlikely to Prompt October Fed Hike
Dow Jones
Yesterday
An anticipated acceleration in U.S. September consumer inflation, due on Wednesday, is unlikely to prompt the Fed to raise interest rates in October, says Macquarie Group's Thierry Wizman in a note.
"We do not believe that the report will sway the Fed into hiking later this month," the global FX and rates strategist says. Many Fed officials have already expressed a predilection for hiking at every other meeting, rather than consecutively, he says.
Analysts in The Wall Street Journal's poll forecast the headline year-over-year CPI to rise to 3.6% from 3.4% in August. Money markets currently price in a 19% probability of a Fed rate hike on Oct. 28, according to LSEG.
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