Analyst: Market Expects Fed to Hold Rates Steady, Inflation Pressures Persist

Odaily reports: Although the US September Consumer Price Index (CPI) and Producer Price Index (PPI) both rose more than expected, AI infrastructure buildout has shown no clear signs of slowing, and energy prices remain elevated, market participants still expect the Federal Reserve to keep interest rates within the target range of 3.75% to 4.00% on Wednesday. Previously, several senior Fed officials delivered remarks signaling no urgency to raise rates this month.

Oxford Economics noted: "Williams and Jefferson made those comments before the upside surprises in inflation data emerged. We do not believe their remarks were a channel through which Warsh was indirectly conveying 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 cast dissenting votes. Both have previously stated that monetary policy still needs further tightening.