ANZ Research discusses its latest outlook for the Fed rates trajectory.

"Our baseline view is that the Fed is on an extended pause into the middle of next year before it will gradually ease rates by 50bp, subject to how data evolve in coming months, particularly the evidence on inflation pass-through," ANZ notes.

"We judge price shocks have not driven a persistent acceleration in broader inflation, while there is some evidence that the inflationary threats of recent price shocks are waning. Moderating wage settlements, well-anchored inflation expectations, gradually slowing median and trimmed mean inflation all support this conclusion. An extended pause should ensure inflation returns to target," ANZ adds.