The U.S. consumer price index (CPI) generally slowed in October, a positive sign for the U.S. Federal Reserve as it seeks to rein in inflationary pressures.
Market participants’ views on the October US CPI are as follows.
◎Bryce Doty, Senior Portfolio Manager at Sitt Investment Associates:
The reason why U.S. bond yields have fallen significantly since the CPI was announced is that investors who did not foresee the end of the tightening phase of U.S. monetary policy may be “throwing in the towel.” The next move from the US Federal Reserve is more likely to be a rate cut next summer than an additional rate hike.
◎Neil Dutta, head of US economic research at Renaissance Macro Research:
The U.S. economy is holding up, and inflation data is a “soft landing nirvana” for the stock market.
◎Charles Schwab UK Managing Director Richard Flynn:
The CPI is approaching the 2% target set by the U.S. Federal Reserve, further raising the possibility of an economic soft landing. The decline in inflation suggests that recent monetary policy is playing its role. This good news raises the possibility that additional rate hikes will be postponed this cycle.
◎Lindsay Rosner of Goldman Asset Management:
The figure had been expected to be higher, as seasonal effects remain and new data sources have been incorporated into health insurance calculations. This will strengthen the view that the Federal Open Market Committee (FOMC) will leave the rate unchanged in December.
Original title:Wall Street Cheers ‘Soft-Landing Nirvana’ CPI: Markets Wrap(excerpt)
2023-11-14 14:40:36
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