Source: The Patriot Light | AWK Network | VIEW ORIGINAL POST ==>
Investing.com — An inflation metric closely monitored by the Federal Reserve climbed higher in the year to October, potentially offering a reason for the central bank to pause its rate-cutting cycle next month.
The accelerated to a 2.3% annual increase during the month, from a reading of 2.1% in September. The figure was in line with economists’ estimates.
On a monthly basis, the grew 0.2%, at the same pace as in September.
Meanwhile, the so-called “core” metric, which strips out more volatile items like food and fuel, came in at 2.8% , ahead of September’s 2.7%. Month-on-month, it 0.3%, unchanged from the previous month, in line with expectations.
The figures come as Fed officials contemplate their next policy decision after they moved to cut borrowing costs by a quarter of a point earlier this month, bringing the target range for the federal funds rate to 4.50-4.75%.
The central bank had started cutting interest rates in September, with an outsized reduction of 50 basis points, the first reduction in borrowing costs since 2020.
The market is split on the likelihood of another cut in December, as the November showed inflation at 2.6%, above the Fed’s stated 2% target…
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