Shutdown Adds Twist to September CPI Release as Fed Weighs Next Rate Cut
The September CPI report, released unusually on a Friday during a government shutdown, is the Fed's key data point before its next rate decision.Summary
The upcoming September Consumer Price Index (CPI) report is set for an unusual Friday release, the first since 2018, occurring just five days before the Federal Reserve's October 29 policy meeting. This timing is highly irregular, as CPI data is typically released earlier in the month on a Tuesday or Wednesday, and the current government shutdown has halted the release of other key economic indicators like jobs and retail sales data. This makes the CPI report the single most critical piece of information for the Fed as it weighs its next interest rate move. Markets are currently pricing in a near-certain 0.25% rate cut, but softer-than-expected inflation data could potentially push policymakers toward a more aggressive 0.5% reduction. Analysts expect consumer prices to show continued, albeit slower, increases. The shutdown adds complexity, as policymakers must make a decision based largely on this single inflation reading amidst concerns over a weakening labor market.
(Source：BeInCrypto)