With unemployment rising, the Federal Reserve has additional ammo for more robust rate cuts. Federal Reserve officials signaled the likelihood of more rate cuts, despite stronger-than-expected inflation and rising jobless claims. Chicago Fed President Goolsbee emphasized the need for rates to drop significantly, while NY Fed President Williams stressed the pace of cuts would depend on data. Some policymakers, including Atlanta’s Bostic, are open to pausing cuts in November.

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Meanwhile most of Americans are left wondering when we will be able to afford a mortgage and a steak dinner out again. U.S. consumer sentiment declined in October, falling to 68.9 from September's 70.1, reflecting frustration over high prices, according to the University of Michigan’s survey. Despite cooling inflation and lower gas prices, concerns surrounding Hurricane Helene and Middle East conflicts may have contributed to the decline. Republican respondents reported a clearer drop in sentiment than Democrats.