[ad_1]
This week’s Inflation data suggests that the Federal Reserve is approaching its target, following a recent significant interest rate cut. Both consumer and producer price indexes for September were in line with expectations, indicating that Inflation is decreasing towards the Fed’s 2% goal. Goldman Sachs predicts that the personal consumption expenditures price index for September will reveal a 12-month Inflation rate of 2.04%, aligning with the Fed’s target. Fed officials are encouraged by the downward trend in Inflation and stabilization in the job market.
While controlling Inflation remains challenging, the latest data shows a slowdown in the rate of price increases from previous highs. The 12-month rate for the consumer price index was 2.4% in September, while the producer price index stood at 1.8%. Core Inflation, excluding food and energy, is expected to be at 2.6% annually for the PCE in September, indicating some areas for improvement. Lower Inflation provides the Fed with leeway to continue cutting rates, especially as it focuses on the labor market. There is speculation about the pace of rate cuts, with futures traders expecting a quarter-point reduction at both the November and December meetings.
[ad_2]
Inflation-target.html”>SOURCE
Lucas Bennett, completed his Finance degree at Bocconi University in Italy in 2018. He is highly skilled in corporate finance and risk management, beginning his career at a hedge fund in Milan. Lucas expertise extends to consulting for leading European firms, particularly within the energy markets sector. His analytical skills and strategic mindset have made him a sought-after consultant, and he continues to explore new opportunities within the financial services industry across Europe.
