Inflation cooling eases pressure, but the Federal Reserve's subsequent policy path remains unclear

According to reports, the U.S. Bureau of Labor Statistics released a report on Friday showing that the price increases for various goods and services in September were lower than expected. This is the only official economic data approved for release during the government shutdown, indicating that the overall CPI rose by 0.3% month-on-month and 3.0% year-on-year, both lower than market expectations of 0.4% and 3.1%. The core CPI, excluding food and energy, increased by 0.2% month-on-month and also rose by 3.0% year-on-year, both below the expected values of 0.3% and 3.1%. This report provides a window into the U.S. economy during the comprehensive suspension of economic data releases. However, the subsequent policy path remains unclear: there are ongoing concerns that Trump's tariff policy may trigger a new round of severe inflation, while Federal Reserve policymakers worry that this year's weak hiring may spread. Federal Reserve Chairman Jerome Powell and his colleagues have remained cautious about the pace of interest rate cuts while weighing inflation threats against a weak labor market, while Trump insists that inflation is no longer an issue and calls for aggressive rate cuts from the Federal Reserve