Many people may have misunderstandings about CPI data

It is definitely good if the inflation data is lower than the previous value. The previous value was 2.5%. The expected value was 2.3%. The published value was 2.4%.

The current data is lower than the previous data. That is, inflation is being contained. Overall, it is definitely a good thing. It just did not meet people's expectations.

Don't worry, because after this CPI data, the Fed will not cut interest rates. It is impossible, don't be misled.

The Fed has already started a cycle of interest rate cuts. It will definitely cut interest rates several times within a year! ! This is unshakable. Newbies should not be misled.

How can the United States pay back tens of trillions of dollars in debt without cutting interest rates here?

Although the broad CPI that most people pay the most attention to has decreased, it has increased a little compared with market expectations. The problem is not big. I personally think it is still good. The monthly rate and core monthly rate of CPI are the same as last month, and they are also slightly higher than expected. The annual rate of core CPI has increased slightly, but the increase is not high, and according to the recent inflation increase, it is the lowest in the past three years. So essentially, it is not a bad data.

From the inflation details, housing and food increased the most in September, and food is not considered core inflation. Moreover, the amount of inflation increase is not very large, and from the current inflation data, the probability of the Fed changing its interest rate cut strategy in November is also very low. A 25 basis point interest rate cut in November is still the most likely.

This change in inflation is not enough to make the Fed change its established strategy. A 25 basis point interest rate cut was originally expected for November, so this inflation data and its results will not have a big impact on the market.