Inflation expected to slow in September but 'upside risks' loom amid start of Fed easing

Published On Oct 9, 2024, 3:13 PM

The article discusses the upcoming inflation data for September, which is expected to show a slowdown. However, analysts caution that there are potential 'upside risks' due to the Federal Reserve beginning to ease its monetary policy. This could lead to rebounds in prices, affecting overall inflation rates. Investors are advised to keep an eye on this dynamic, as it may influence market stability and investment strategies.

Stock Forecasts

As inflation data suggests a potential slowdown, but with risks of increases due to Fed easing, sectors sensitive to interest rates might benefit. Investments in defensive sectors such as Consumer Staples (XLP) may see positive momentum.

Related News

Prices in segments of the U.S. economy, like some imported goods, consumer electronics and gasoline, have deflated since September 2023.

Investors are looking to the latest reading on CPI consumer inflation to set expectations for the path of interest rates.

XLB
XLP

The annual cost-of-living adjustment will increase monthly checks for millions of beneficiaries, including retirees and disabled workers.

XLP
VHT