Collins said that while core inflation pressures remain elevated, she is increasingly confident inflation is moving back to the Fed's 2% target.

Markets strengthened bets the Fed would deliver a quarter-point rate cut at next month’s policy meeting after data showed consumer price inflation edged down to 2.4 per cent in September

And where the risks are now.

The case for quarter-point U.S. interest rate cuts at upcoming Federal Reserve policy meetings appeared intact on Friday after a report showed producer prices were flat last month compared with August,

Most investors were expecting the Federal Reserve to cut rates by 0.25% or 0.50%. The move was already well-baked into the market, so it’s not surprising to hear they went for the full 0.50%. But this is only the beginning of a series of cuts expected over the next year or two.

The Fed’s decision to opt for a bigger rate cut wasn’t without its controversy, according to minutes from its September meeting. While the move to lower rates by half a percentage point was approved by a majority of the 12 voting members,

The case for quarter-point U.S. interest-rate cuts at upcoming Federal Reserve policy meetings appeared intact on Friday after a report showed producer prices were unchanged last month compared to the prior month,

A Federal Reserve official said he was open to cutting interest rates by a quarter percentage point or standing pat at the central bank’s meeting next month depending on how the economic outlook develops.