US CPI Slowdown May Lead to Fed Interest Rate Cuts

The US consumer price index (CPI) saw unexpected deceleration in September, with a significant drop attributed to a decrease in rent component rates. This development has analysts predicting potential interest rate cuts by the Federal Reserve in both October and December. The upcoming government shutdown and cooling job market further contribute to this prediction. According to Huatai Securities, the slowdown is a signal for potential Fed action. Market reactions reflect cautious optimism, as stakeholders watch for signals from the Fed and the impact on the job market. Expert analyses highlight how these changes in economic conditions could reshape financial strategies, prompting regulatory adjustments.