Walter Bloomberg
2025.10.15 15:11

TAME INFLATION BETS STRENGTHEN FED’S CASE FOR CUTS

Market pricing shows inflation expectations remain contained, supporting the Fed’s outlook for rate cuts this fall.

* CPI swaps: 3.1% expected over 12 months, 2.5% over five years.

* 10-year breakeven: steady at 2.3%, in line with the Fed’s target zone.

This matches the Fed’s view that tariff-driven inflation will fade next year. CPI typically runs slightly above the Fed’s 2% PCE target.

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