Institutions: Various signs indicate that the impact of tariffs on inflation is controllable, and the Fed can still cut interest rates twice more.

Jin10 data reported on October 24, analysts at Investinglive, Justin Low, stated that given that CPI is the only important data this month, the market's focus, emphasis, and scrutiny on it will be more concentrated than on any previous data. The first thing to pay attention to is whether tariffs have further impacts on inflation. Core goods inflation rose by 0.28% in August, and this time it is expected to rise by 0.35%. If it significantly exceeds expectations, reaching 0.4%, it could mark the highest reading since May 2023, which would raise some concerns. However, the market expects that even if the strengthening core prices indicate further evidence of tariff transmission, it will be offset by the slowing service inflation. For some analysts, they still expect the tariff transmission effects to manifest, but to a lesser extent. Overall, various signs seem to point to the view that the impact of tariffs is quite controllable, and despite the impact of tariffs, prices remain relatively stable. Coupled with the weak labor market putting pressure on economic balance, this still supports the narrative that the Fed could lower interest rates in October and December this year.