Lates News

The market widely expects that the U.S. overall CPI for September may rise significantly, but core CPI, excluding food and energy, is expected to slow on a month-over-month basis, which would reduce the urgency for the Federal Reserve to raise rates again in October. The Fed raised rates as expected last month and signaled further rate hikes ahead. However, weak September employment data, combined with lower-than-expected PCE inflation in July and August, have sharply cooled market expectations for an October rate hike. Scott Anderson, chief U.S. economist at BMO Capital Markets, noted that if the monthly core CPI rate for September can remain in the 0.2% range, that would be enough to support the Fed staying put in October. At the same time, however, he warned that this does not mean the debate over whether further rate hikes are needed is over.