Inflation 'unlikely to show much progress' in October as Fed debates year-end rate cuts

Published On Nov 12, 2024, 12:20 PM

The upcoming Consumer Price Index (CPI) report for October is anticipated to show a slight increase in inflation, moving from 2.4% in September to 2.6%. Despite this rise, core inflation remains elevated at 3.3%, driven primarily by high shelter costs. Economists suggest that significant progress in reducing inflation is unlikely, and this could complicate the Federal Reserve's plans regarding future interest rates, with speculation of another rate cut possible in December. The election of Donald Trump may introduce further uncertainties regarding inflation due to his proposed economic policies.

Read full article

Stock Forecasts

XLFView XLF chart on TradingView

Negative

Given that inflation is expected to remain above the Federal Reserve's target while the economic outlook remains cautious, the markets may respond negatively to increased uncertainty surrounding interest rate decisions. The potential for future rate cuts could lead to volatility in financial stocks.

Related News

Wall Street bonuses expected to rise for first time since 2021: report

Nov 12, 2024, 6:08 PM

Wall Street firms are expected to increase bankers' bonuses this year for the first time since 2021 amid markets' rise and volatility, according to a report by Johnson Associates.

XLF

Any inflation surprises might give Fed 'pause' about cutting in December: Kashkari

Nov 12, 2024, 3:37 PM

The Federal Reserve might have to rethink another cut at its December meeting if inflation surprises 'to the upside' over the next month, Minneapolis Fed president Neel Kashkari told Yahoo Finance.

XLF

Why Tesla, crypto and prisons are Trump trade winners

Nov 12, 2024, 1:53 PM

As the dust settles on a post-election stock market rally, some firms have already gained

TSLA
XLF
CXW