The Fed’s Favorite Inflation Measure Sped Up in October
Published On Nov 27, 2024, 10:04 AM
Inflation remains a concern as the Federal Reserve's preferred measure, the Personal Consumption Expenditures (PCE) index, showed a year-over-year increase of 2.3% in October, slightly higher than September's 2.1%. The core index, which excludes volatile food and energy prices, rose 2.8%, up from 2.7%. While inflation is lower than its peak in 2022 (7%), it still exceeds the Fed's target of 2%. This stubborn inflation trend may influence the Fed's decisions on interest rates.
Stock Forecasts
XLF
Negative
Due to the persistent inflation and the upcoming tariffs from President-elect Donald J. Trump, there may be bearish effects on the overall economy, leading to potential declines in the stock market. This situation could particularly affect banks and financial institutions, which are sensitive to interest rate changes.
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