America's fight with inflation has been won just in time for a bigger battle

"The Fed is expected to please whoever wins by cutting interest rates and signalling several more reductions, after figures showed a two-year battle against inflation had been largely won in the summer."

"Markets currently expect Fed boss Jerome Powell to announce a 0.25-percentage-point reduction in interest rates, to a spread between 4.5% and 4.75%, at a press conference on 7 November."

"There are doubts among some Fed officials about whether the defeat of inflation has been permanent and lasting, worrying that businesses will jack up prices by more than the Fed's 2% target."

"The weak data means that a larger 0.5-percentage-point reduction in the cost of borrowing is possible, which would be welcomed by most US workers, whose wage increases have been steady."

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