The Consumer Price Index (CPI) rose 0.2% in October, leading to an annual inflation rate of 2.6%, aligning with analyst expectations but still higher than the Fed’s target. Core CPI, which excludes food and energy prices, increased by 0.3% for the month and 3.3% annually. These stability signals suggest that the Federal Reserve will likely maintain its easing stance throughout the year. The chances of a second 25-basis point interest rate cut in December have surged to 82%, up from 58%. As the Fed Chair, Jerome Powell, prepares to speak at the Fed Bank of Dallas, the market remains vigilant for insights into future economic policies—particularly as attention turns towards 2025 and the potential implications of President-elect Donald Trump's economic plans. The current economic climate indicates a sustained focus on easing measures as the Fed navigates upcoming policy decisions.

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