News

Jinse Finance reported that Inflation Insights analyst Omair Sharif believes a U.S. government shutdown and the resulting lack of official economic data could hinder the Federal Reserve's plan for a third consecutive rate cut in December. If there is no official data reflecting economic activity in October and November when the meeting is held on December 10, officials may not feel confident enough to cut rates again. It may be difficult for them to reach a consensus on another rate cut, especially considering the internal divisions within the FOMC shown in the September dot plot.

Jinse Finance reported that analyst Joseph Richter stated: "After Powell indicated that a rate cut in December is not yet set in stone, the yield curve has flattened in a bearish manner, which in our view is a bit overdone." "Although the Federal Reserve may not cut rates at every meeting (even though we believe they will cut rates), we think these remarks are an attempt to regain optionality. The market may interpret this as hawkish, but that may not necessarily materialize."