According to Jin10 data, Pepperstone analyst Michael Brown believes that despite the U.S. Consumer Price Index (CPI) data for September being slightly higher than expected, it is unlikely to materially change the Federal Open Market Committee (FOMC) policy outlook. Brown expects the FOMC to potentially cut interest rates by 25 basis points at each of its remaining two meetings this year, with the pace of cuts likely continuing into 2025. This provides market participants with further confidence to stay away from the risk curve, leading to relatively limited pullbacks in the stock market, which are often seen as buying opportunities.

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<p>According to TechFlow news on October 10, as reported by Jinshi Data, Pepperstone analyst Michael Brown shared his views on the recently released U.S. Consumer Price Index (CPI) data for September. Although the CPI data was slightly higher than expected, Brown believes this is unlikely to materially change the policy outlook of the Federal Open Market Committee (FOMC).</p>
<p>Brown pointed out: "Although the September employment report was strong, considering the ongoing easing of inflationary pressures, the FOMC is expected to cut rates by 25 basis points at each of its two remaining meetings this year. This pace of rate cuts may extend into 2025, until the federal funds rate returns to a neutral level of around 3% by next summer."</p>
<p>He further explained: "This essentially constitutes a 'Federal Reserve put option' that continues to exist in a strong and flexible manner. This not only provides market participants with further confidence to move away from the risk curve but also keeps stock market pullbacks relatively limited, with pullbacks often seen as buying opportunities."</p>
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Institutional Analyst: September CPI Data is Unlikely to Change FOMC Policy Outlook