Article

DBS Bank: Core CPI or slow further,USD the rally faces a test

PANews October 14 reported, citing Jin10, that DBS Bank analyst Philip Wee said Federal Reserve official Williams supports raising rates again before the end of the year, 2026 but is unwilling to endorse market pricing for further policy tightening in 2027 year. Williams also reminded the market that the Federal Reserve remains data-dependent, rather than “dependent on a single data point.” Monetary policy will be guided by the potential inflation trajectory over the coming 1 to 2 years, rather than individual data releases. Against this backdrop, today’s CPI report should focus more on the expectation that core inflation will slow from 0.3%to 0.2%. Williams believes that the forces driving inflation lower remain intact, with price pressures concentrated mainly in AI and the energy sector, rather than spreading across the broader economy. He saw almost no evidence of labor-market-driven inflation or an overheated US economy. This distinction is crucial for USD because since the Federal Reserve began raising rates in September, the rally in USD...

Source: https://www.panewslab.com/zh/articles/01a139b5-e0c2-7611-ad5e-3f03ceafee95