The Fed will continue to cut interest rates, and market expectations have stabilized.

This week, the United States released the CPI and PPI inflation data for September. The year-on-year and month-on-month increases in both the overall CPI and the core CPI exceeded expectations. Despite this, the year-on-year increase in CPI of 2.4% still hit the lowest level since February 2021. The month-on-month PPI was the same as last month, further indicating that inflation is continuing to cool.

Although the CPI and PPI data in September were mixed, the final result was close to market expectations, indicating that US inflation is steadily moving towards the Fed's 2% target, and the inflation target is within reach.

With the release of two key data this week, the market has almost confirmed that the Fed will cut interest rates by 25 basis points each at its November and December meetings.