Equities traders are likely to shrug off any evidence of stubborn inflation in Friday’s consumer price index report, as the market narrative is dominated by optimism for an expected Federal Reserve interest-rate cut next week.
The Federal Reserve will lower its key interest rate by 25 basis points next week and again in December, according to a Reuters poll of economists who remain deeply divided on where rates will be by the end of next year.
The return of ZIRP! Hurrah.