Mark Zandi, Chief Economist at Moody's Analytics, predicts that the Federal Reserve will likely cut rates next week despite inflation surpassing the target, with CPI currently at 2.9%. Zandi points to a stagnant labor market and increasing recession risks as reasons for the potential rate cut decision. He emphasized that the current inflation rate is higher than desired by the Fed, with the personal consumption expenditures index usually lower. Zandi highlighted that even though inflation is above target, the deteriorating job market situation will likely be the driving factor behind the rate cuts. If the CPI data is less than expected, Zandi suggested that this could lead to the anticipation of a more significant rate cut by the markets. This information was shared during an interview on CNBC ahead of the consumer price index release. The full article can be found on the Benzinga website.