Analyst: Market Expects Fed to Hold Rates Steady, Inflation Pressures Persist

Odaily News: Although US September Consumer Price Index (CPI) and Producer Price Index (PPI) increases both came in higher than expected, AI infrastructure construction has not shown clear signs of slowing, and energy prices remain elevated, market participants still expect the Federal Reserve to keep interest rates within the target range of 3.75% to 4.00% on Wednesday. Previously, several senior Fed officials delivered remarks signaling no rush to raise rates this month.

Oxford Economics noted: "Williams and Jefferson made those remarks before the higher-than-expected inflation data emerged. We do not believe their statements were a channel through which Warsh indirectly conveyed views to the market, as may have occurred during the tenures of several previous Fed chairs." If the Fed decides to hold rates steady, officials such as Cleveland Fed President Hammack and Dallas Fed President Logan may vote against the decision. Both have previously said monetary policy still needs further tightening.