Analysts: Markets expect the Fed to keep interest rates unchanged as inflationary pressures persist.

On October 28, despite the US September Consumer Price Index (CPI) and Producer Price Index (PPI) both rising more than expected, no clear signs of a slowdown in AI infrastructure development have emerged, and energy prices remain elevated. Market participants still expect the Federal Reserve to maintain interest rates within its target range of 3.75% to 4.00% on Wednesday. Previously, several senior Fed officials delivered speeches signaling no rush to raise rates this month.

Oxford Economics noted: “Williams and Jefferson made the aforementioned comments before the unexpectedly high inflation data was released. We do not consider their statements as an indirect channel for Walsh to convey views to the market, though similar scenarios may have occurred under previous Fed chairs.” If the Fed decides to hold rates steady, officials such as Cleveland Fed President Hamrick and Dallas Fed President Logan may cast dissenting votes. Both had previously stated that monetary policy still requires further tightening. (Jin10)