The Fed enters October the meeting blackout period, with the market awaiting Wosh's remarks and September CPI
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AT A GLANCE
Traders are awaiting September CPI and Wosh's remarks to assess the Fed's subsequent pace of rate hikes.
Article
The Fed enters October the meeting blackout period, with the Treasury market closely watching Wosh's remarks and the inflation report
PANews October 12 reported that U.S. bond market traders are waiting for the latest CPI data and remarks from Fed Chair Wosh to assess how quickly the Fed will continue raising rates. This month's nonfarm payrolls report showed a marked slowdown in job growth, prompting traders to expect the Fed to keep rates unchanged at its next meeting at the end of October of this month, limiting the extent of the bond sell-off. The market still expects December to raise rates by 25 basis points, followed by two more rate hikes before the end of 2027 the year. This market pricing also means that if September the CPI increase exceeds expectations, it will increase pressure on the Fed to accelerate the pace of rate hikes and could trigger another bond sell-off. The Fed will enter its regular blackout period starting Saturday, and the 2-day rate-setting meeting will end on October 28🔗https://www.panewslab.com/zh/articles/01a13046-8173-768e-b563-f3047061936c
Key points
01
The Fed will enter its regular blackout period starting Saturday.
02
The Fed's 2-day rate-setting meeting will end on October 28.
03
This month's nonfarm payrolls report showed a marked slowdown in job growth.
04
Traders expect the Fed to October keep rates unchanged at its next meeting at the end of this month.
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The market still expects December to raise rates by 25 basis points, followed by 2027 two more rate hikes before the end of the year.
06
If September the CPI increase exceeds expectations, it could increase pressure on the Fed to accelerate the pace of rate hikes and could trigger another bond sell-off.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The market is waiting for September CPI data and remarks from Fed Chair Wosh to assess the future pace of rate hikes. Slower job growth has led traders to expect October not to raise rates at the end of this month for now, but the market still expects December to raise rates by 25 basis points.
Why it matters to readers
CPI and officials' remarks could affect the market's assessment of the subsequent rate-hike path and influence Treasury trading.
CPI is data measuring changes in consumer prices. If the increase exceeds expectations, the market may become more concerned about faster rate hikes, and bond prices could come under pressure.
Risks and unknowns
The evidence does not state September CPI the actual outcome of.
The evidence does not state what position Wosh will ultimately take.
The evidence does not confirm the actual rate decisions at the October end-of-month meeting and the December meeting.
The 2027 two rate hikes before year-end mentioned in the article are market expectations, not a confirmed policy arrangement.
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Blackout period
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