📊 The market is waiting for a rate cut — inflation gives the green light
◾️ The September core CPI turned out lower than expected: only +0.2% month-on-month and +3.0% year-on-year.
◾️ Indices are rising — S&P 500 is hitting records, bond yields are falling, and the dollar is weakening. This is a signal that pressure on the Fed is easing.
◾️ The yield on 2-year U.S. Treasury bonds has decreased to 3.46%, indicating expectations of two rate cuts by the end of the year.
◾️ The first cut could happen at the next Fed meeting, the second — in December.
◾️ Economists call the current data a “balanced scenario”: inflation is slowing down, and the economy is holding steady.
💬 Prices are not rising, the economy is not declining — the Fed has room for easing monetary policy.
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