Fed Seen Headed for More Rate Cuts as Inflation Undershoots Expectations
The Federal Reserve is likely to deliver quarter-point interest rate cuts at each of its next three meetings, traders bet on Friday (Oct 24) after a US government report showed consumer inflation rose less than expected last month.
The Consumer Price Index climbed 3 per cent in the 12 months through September, the Labor Department’s Bureau of Labor Statistics said on Friday, a tick up from its 2.9 per cent increase in August but below the 3.1 per cent expected by economists polled by Reuters.
This may give even the central bank’s more hawkish policymakers comfort that continuing to ease borrowing costs to support the labour market won’t reignite inflation, analysts said.
No specific quote available in the text.
Author's summary: Fed to cut interest rates due to low inflation.