Key Fed gauge shows inflation is 'going sideways'
Published On Nov 27, 2024, 10:18 AM
The latest Federal Reserve report indicates that inflation is stagnating. The core Personal Consumption Expenditures (PCE) index saw a 0.3% increase month-over-month in October, matching expectations but demonstrating no real progress towards the Fed's 2% inflation goal. Over the past year, core prices have risen by 2.8%. The Fed is unlikely to cut rates until there is clearer evidence of a decrease in core inflation, despite market speculation for potential rate cuts in 2024.
Stock Forecasts
XLC
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The stagnation in core inflation suggests that the Federal Reserve may have to maintain interest rates longer than previously anticipated, which could affect various sectors of the stock market. Investors may want to consider sectors that typically benefit from stable or lower interest rates in such an environment.
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