WS #14817
Federal Reserve official Hammack stated that underlying inflation is likely still above target, complicating the path for rate cuts. Concurrently, US consumer sentiment data for September showed a decline to 48.1, reflecting ongoing household pressure from higher prices. While the drop in oil prices provides some relief, the combination of sticky inflation expectations and weakening sentiment suggests that the Fed may need to maintain a restrictive policy stance for longer than markets hope, dampening the bullish equity rally.
Fed Inflation & Sentiment Data
Federal Reserve official Hammack stated that underlying inflation is likely still above target, complicating the path for rate cuts. Concurrently, US consumer sentiment data for September showed a decline to 48.1, reflecting ongoing household pressure from higher prices. While the drop in oil prices provides some relief, the combination of sticky inflation expectations and weakening sentiment suggests that the Fed may need to maintain a restrictive policy stance for longer than markets hope, dampening the bullish equity rally.