Institution: The possibility of the Federal Reserve standing pat shrinks ahead of the release of important data next week

Investors' expectations for the Federal Reserve to maintain interest rates at its next meeting have decreased, and inflation and employment data set to be released next week could still change these expectations.

According to CME FedWatch, the probability of the Fed maintaining interest rates has dropped from nearly 20% earlier this month to 2%. Most people are betting that the Fed will cut interest rates by 25 basis points.

September PCE data will be announced next Thursday, and October employment data will be released next Friday. Price data shows that inflation is persistent but not overheated. Employment data may be affected by one-off impacts from hurricanes and strikes.