WS #15147
Market expectations have shifted toward a Fed rate hold at the October meeting, with a 66% probability now assigned, supported by Core PCE inflation dropping to 3.0%. Despite this cooling inflation data, the 30-year mortgage rate has hit 7.30%, indicating persistent pressure on the housing sector. The US GDP was also revised higher, suggesting robust consumer spending that may justify the Fed's cautious stance.
US Macro & Fed Policy Shift
Market expectations have shifted toward a Fed rate hold at the October meeting, with a 66% probability now assigned, supported by Core PCE inflation dropping to 3.0%. Despite this cooling inflation data, the 30-year mortgage rate has hit 7.30%, indicating persistent pressure on the housing sector. The US GDP was also revised higher, suggesting robust consumer spending that may justify the Fed's cautious stance.