Fed Chairman Jerome Powell prepares to deliver remarks to the The Fed. Photo by Chip ... [ ] Somodevilla/Getty Images.

The September U.S. Consumer Price Index tops this week's economic reports. With year-on-year total and core CPI inflation rates still above the Federal Reserve's 2% target, traders and investors will be watching for signs that give the Fed license to cut interest rates on November 7. Inflation rates that are too high present downside risks to equity markets and commodity prices. Elevated inflation rates could keep the Fed from cutting interest rates next month.

This week’s September CPI report will be critical for Fed interest rate policy expectations because labor market and inflation data are the Fed’s main policy concerns. With the potential to shape Fed policies, which are front and center for financial markets, the CPI report could impact everything from equities and bonds to industrial commodities and the dollar.

Year-on-year total CPI inflation slowed in August to the lowest year-on-year pace since February 2021. Total CPI decelerated to 2.5%........

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