The higher than expected inflation in September (US) further dampened the market’s expectations for a Fed rate cut in November. According to CME’s Fed Watch Tool, which shows market expectations in futures trading, there is an 87.5% chance of a 25 bps rate cut at the FOMC meeting on November 7, while the possibility of no rate cut has reappeared. A 50 basis point cut is not priced in at all, while the odds of leaving interest rates unchanged rose to 13.5%.

“Discount may not come”

Skyler Weinand of Regan Capital, a financial company that provides services on financial instruments that provide fixed income, said: ‘When we look at this picture together with last week’s employment figures, we can also see the possibility of a reduction in November.’

Core inflation also rose

In addition to the headline inflation, which was expected to be 2.3%, coming in at 2.4%, there was also an increase in core inflation. Core inflation, which was expected to be 3.2%, came in at 3.3% yoy. Core inflation, which excludes oil and food prices, is one of the data closely monitored by the Fed.

The most important items in core inflation were housing (4.9% yoy), motor vehicle insurance (16.3%) and health (3.3%).

After the announcement of the data, declines were also seen in Nasdaq and S&P 500 futures. Bitcoin, on the other hand, maintained its course at the level of $61 thousand.