Key Fed inflation gauge shows price increases match expectations in September

Published On Oct 31, 2024, 8:44 AM

The core Personal Consumption Expenditures (PCE) index, crucial for the Fed's analysis, indicated a 0.3% rise in prices for September, matching Wall Street expectations. The annual rate of price increase was 2.7%, slightly above expectations but on a downward trend compared to earlier periods. This data comes ahead of the Federal Reserve's upcoming policy decision, where a moderate interest rate cut is anticipated. Positive economic growth continues, with a GDP growth rate of 2.8% in the third quarter.

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Stock Forecasts

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Positive

The consistent PCE growth and positive GDP numbers suggest a stable economic environment, prompting the Fed to maintain or cautiously adjust interest rates. This steadiness may favor consumer-focused or growth-oriented sectors.

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Positive

Investors should consider that as inflation stabilizes and interest rates may be cut again, growth sectors like technology might experience considerable growth. However, cautious sectors like utilities may see less excitement.

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