From Financialexpress · Sunil Dhawan · · 1m 10s
US Inflation Data Shapes Fed Rate Decision
Hot inflation data pushes Fed to pause rates despite weak hiring.
In brief
Hot inflation data pushes Fed to pause rates despite weak hiring. US inflation data shows hotter prices but weak job growth, keeping Fed's next rate move at pause with narrow margin. Originally reported by Financialexpress.
US Fed Rate Decision
US Fed must balance prices and jobs but neither is moving in its favour.
Rising Inflation Concerns
Google Trends shows rising interest in US CPI data and Fed rate hike expectations.
September CPI Data
Consumer prices rose 0.6% monthly and 3.7% annually in September 2026.
Energy Costs Surge
Energy index alone rose 5.2% monthly and 20.4% annually in September 2026.
Producer Prices Jump
Producer prices soared 1.3% monthly in September 2026, sharpest rise since russian invasion of ukraine.
FedWatch Odds Shift
CME FedWatch Tool shows 66.2% chance of rate pause at October 27-28 meeting.
Weak Job Market
US economy added 29,000 jobs in September 2026, below forecast of 90,000.
Next Data Points
September core pce expected to rise 0.3% monthly, with yearly reading at 3.1% by October.
The bottom line
US inflation data shows hotter prices but weak job growth, keeping Fed's next rate move at pause with narrow margin.
