Overnight, both US CPI and core CPI growth in October slowed beyond expectations, triggering a market frenzy.

After the CPI was announced, market pricing reflects that investors currently expect the Fed to start cutting interest rates in March next year as soon as next year, and that it will cut interest rates about twice by July.

Nick Timiraos, a well-known journalist who is regarded as the “mouthpiece of the Federal Reserve” and known as the “New Federal Reserve News Agency,” said bluntly that the Fed may have already raised interest rates.

Timiraos posted that the October employment report and inflation report strongly suggest that the last time the Fed raised interest rates in this round occurred in July. The next Fed meeting will mainly discuss whether and how to revise the post-meeting statement, and reflect the obvious truth: the Fed remains on hold.

If the Federal Reserve stops raising interest rates or even starts cutting interest rates, how should we seize investment opportunities as investors?

It is worth noting that some Wall Street people also believe that the CPI confirmed the view that interest rate hikes were completed in July.

Ian Lyngen, head of US interest rate strategy at BMO Capital Markets, commented that the October CPI report is good news for the Federal Reserve. It provides evidence that monetary policy is still effective and is affecting the real economy, and the impact is lagging behind — fundamentals clearly still apply. This eliminated the possibility of a December rate hike and strengthened their view that July was the last rate hike in this round.

Bryce Doty, senior vice president of Sit Investment Associates, commented that as inflation continues to slow, the Fed actually ending the tightening cycle seems to be a smart move. The reason US bond yields dived in the CPI announcement was that the last group of investors who did not believe that the Fed had raised interest rates may have rejected it.

Editor/Somer