Esposito: Inflation Finally Moving in the Right Direction as Markets Eye Fed Rate Cuts
Ascalon VI Capital CEO Anthony Esposito broke down the latest Producer Price Index report, explaining that while the data is from September and somewhat outdated, it still shows meaningful shifts. Goods prices ticked higher—mainly due to gas and energy costs—while service prices eased, a reversal of what the economy has seen in recent months. Esposito noted that energy prices have already come down since the September window, meaning some of the upward pressure in the report has already faded. With inflation falling from a 12% peak during the Biden era to roughly 2.3% today, he said overall price trends are “moving in the right direction.”
Esposito emphasized that the mixed movements are normal as inflation cools, but the broader trend remains positive. While the report reflects some volatility, he said it largely matched expectations and fits into the ongoing pattern of easing inflation after several years of painful price increases.
Tim Descher of Unleash Prosperity then weighed in on the market reaction. He pointed out that falling bond yields signal investor hesitation about the economy, which in turn opens the door for the Federal Reserve to cut interest rates. With all major stock indexes trading in the green, optimism is building that the Fed may move toward another rate cut as early as its next meeting.
Descher said he expects a rate cut—likely around 25 basis points—arguing that the economy is on solid enough footing for the Fed to make the move without risking a downturn. He added that lower borrowing costs align with President Trump’s pro-growth agenda, which aims to reduce capital costs and free businesses to invest and hire. The interview wrapped with both panelists agreeing that easing inflation and potential rate cuts point toward improving economic conditions heading into the holidays.
