Posted 11/29/2023, 7:24:00 PM
October Inflation Report in Focus, Raising Questions on Fed Policy and Path of Inflation
- October PCE inflation report on Thursday could show cooling inflation, raising questions about further Fed rate hikes
- Forecast is for 0.2% monthly rise in core PCE, bringing yearly rate down to 3.5% from 3.7%
- But inflation still well above Fed 2% target, so question is whether rates are high enough to decelerate to 2%
- Fed officials increasingly confident current high rates will slow economy and inflation, but remain cautious
- Bigger 0.3%+ rise in core PCE could spur negative market reaction on concerns of inflation rebounding