PANews reported on October 6 that according to Jinshi, there may be some upside risks to the US September CPI data next Thursday, especially the core CPI. According to the initial value of the S&P Global Purchasing Managers Index, corporate purchasing prices rose at the fastest pace in 6 months. Although the ISM manufacturing survey showed a decline, the non-manufacturing report confirmed the claim that price pressures accelerated. Therefore, if the data shows that there is some stickiness in inflation, more investors may believe that the Fed will act as planned and cut interest rates by 25 basis points in both November and December decisions.
"After a summer of relatively weak employment data, the September jobs report was exactly what the Fed wanted, breaking with recent trends and providing reason for optimism that the labor market remains resilient," said Jim Baird, chief investment officer at Plante Moran Financial Advisors. He added that while the report won't change the economic outlook, it should ease any concerns investors or the Fed have about the job market. Earlier this week, Fed Chairman Jerome Powell said he doesn't want to see further weakness in the labor market. One of the main reasons the Fed decided to cut interest rates by 50 basis points last month was the slowdown in hiring and the rise in unemployment earlier this year.