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.
Stock Forecasts
XLF
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.
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