WS #15814
Economists anticipate that September CPI data will show accelerating price increases, with a 0.6% monthly rise and 3.6% year-over-year growth. This expectation challenges the market's optimism for aggressive Fed rate cuts, particularly given the ECB's signal of rising long-term rates. The macro environment suggests a higher-for-longer rate scenario, which is bearish for high-multiple growth stocks and REITs, while potentially supporting financials.
Macro Inflation & Rate Path Uncertainty
Economists anticipate that September CPI data will show accelerating price increases, with a 0.6% monthly rise and 3.6% year-over-year growth. This expectation challenges the market's optimism for aggressive Fed rate cuts, particularly given the ECB's signal of rising long-term rates. The macro environment suggests a higher-for-longer rate scenario, which is bearish for high-multiple growth stocks and REITs, while potentially supporting financials.