{"id":54169,"date":"2025-10-07T11:38:30","date_gmt":"2025-10-07T15:38:30","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/fed-officials-grapple-with-data-gaps-amid-rising-inflation-expectations-dairy-prices-fall-oracle-faces-ai-chip-rental-challenges\/54169\/"},"modified":"2025-10-07T11:38:30","modified_gmt":"2025-10-07T15:38:30","slug":"fed-officials-grapple-with-data-gaps-amid-rising-inflation-expectations-dairy-prices-fall-oracle-faces-ai-chip-rental-challenges","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-officials-grapple-with-data-gaps-amid-rising-inflation-expectations-dairy-prices-fall-oracle-faces-ai-chip-rental-challenges\/54169\/","title":{"rendered":"Fed Officials Grapple with Data Gaps Amid Rising Inflation Expectations; Dairy Prices Fall, Oracle Faces AI Chip Rental Challenges"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>Federal Reserve official Miran expressed optimism that the Fed will have the necessary economic data by the <strong>October FOMC meeting<\/strong>, while emphasizing that <em>private data cannot fully bridge existing information gaps<\/em>.<\/li>\n<li>The <strong>New York Federal Reserve<\/strong> reported a notable increase in <strong>short-term inflation expectations<\/strong> for September, rising to <strong>3.4%<\/strong> over the next year from 3.2% in August, alongside a <em>deterioration in labor market expectations<\/em>.<\/li>\n<li>The <strong>Global Dairy Trade (GDT) Price Index<\/strong>, managed by New Zealand, experienced a <strong>1.6% drop<\/strong>, with the average winning price falling to <strong>$3,921 per metric ton<\/strong> at auction.<\/li>\n<li>Internal data from <strong>Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>)<\/strong> revealed <em>financial challenges<\/em> associated with renting out <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> chips, indicating <em>razor-thin gross profit margins<\/em> in its AI cloud business.<\/li>\n<\/ul>\n<p>Federal Reserve officials are navigating a complex economic landscape marked by ongoing data concerns and shifting inflation expectations. Fed Governor Miran stated his hope that the central bank will acquire the essential economic data before the upcoming <strong>October Federal Open Market Committee (FOMC) meeting<\/strong>, noting that private sector data is insufficient to fill current information gaps. Miran also highlighted the global standard of U.S. government data and cautioned against its manipulation for political ends, emphasizing the need for careful analysis and interpretation of all economic figures. He further pointed out that falling response rates are becoming a significant issue for data collection.<\/p>\n<p>Meanwhile, the <strong>New York Federal Reserve<\/strong> released its September survey, indicating that <strong>short-term inflation expectations<\/strong> for the next year have risen to <strong>3.4%<\/strong>, up from 3.2% in August. Expected inflation over a three-year horizon remained steady at <strong>3%<\/strong>, while the five-year outlook increased to <strong>3%<\/strong> from 2.9%. The report also showed that households improved their personal finances in September but lowered their future financial expectations, with the highest food price increase recorded since March 2023. Labor market expectations also deteriorated during the month. Miran suggested that the neutral interest rate, which cannot be directly measured, is likely around <strong>0.5%<\/strong>.<\/p>\n<p>In commodity markets, the <strong>Global Dairy Trade (GDT) Price Index<\/strong>, overseen by New Zealand, saw a <strong>1.6% decline<\/strong> in its latest auction. The average winning price for dairy products now stands at <strong>$3,921 per metric ton<\/strong>, with whole milk powder specifically dropping <strong>2.3%<\/strong> to <strong>$3,696 per ton<\/strong>.<\/p>\n<p>In the technology sector, internal data from <strong>Oracle (<a href=\"\/stock\/ORCL\">ORCL<\/a>)<\/strong> has revealed <em>financial challenges<\/em> associated with its strategy of renting out <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> chips. Reports indicate that Oracle&#39;s AI cloud business is operating with <em>razor-thin gross profit margins<\/em>, raising questions about the profitability of its ambitious AI expansion efforts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Federal Reserve official Miran expressed optimism that the Fed will have the necessary economic data by the October 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