U.S. retail sales posted a 0.4% monthly rate in September, reinforcing expectations for a 25 basis point Fed rate cut

U.S. retail sales increased slightly more than expected in September, supporting the view that the economy maintained strong growth in the third quarter. U.S. retail sales posted a monthly rate of 0.4% in September, compared with an unrevised 0.1% increase in August. Signs of economic recovery may not prevent the Fed from cutting rates again next month, but will reinforce expectations for a 25 basis point cut.