In the global markets, a positive trend emerged with expectations that the US economy could experience a soft landing. Today, all eyes are on the inflation data to be announced in the country.

As the battle against inflation comes to an end worldwide, concerns persist about whether the long period of high interest rates will result in a recession. Investors will be closely watching the US inflation data to gain more clues about potential interest rate cuts. Economists expressed the expectation that headline inflation in the country would increase by 0.1% on a monthly basis. It is anticipated that annual inflation will decrease to 2.3%. Core inflation is expected to remain stable at 3.2% annually. Analysts noted that the optimistic signals from the employment report released last week fueled risk appetite. They mentioned that today’s inflation data could increase volatility in the markets. Expectations for interest rate cuts diminished after the data released last week.

It is almost certain that the Fed will make a total of 50 basis points of cuts with 25 basis points each in the two meetings by the end of the year. The market is pricing in a 82% probability of a 25 basis point interest rate cut. Furthermore, Support for a jumbo interest rate cut

Minutes from the Federal Open Market Committee (FOMC) meeting held on September 17-18 were released yesterday. The minutes indicated that a significant majority of bank officials supported a 50 basis point reduction in the policy rate.

According to the minutes, economic growth remains strong and unemployment continues to stay low, while inflation is still somewhat high. However, some officials argued during the meeting that a 25 basis point cut in the policy rate was necessary.