Fed seen keeping rates on hold well into next year
© Reuters. FILE PHOTO: The U.S. Federal Reserve building is pictured in Washington, March 18, 2008. REUTERS/Jason Reed/File Photo
Cooling inflation will likely keep the Federal Reserve on pause in coming months, traders bet on Friday, even as persistent underlying price pressures amid strong consumer spending kept some chance of a rate hike later this year in play. The personal consumption expenditures price index, which is the Fed's preferred inflation gauge, rose 3.4% in September from a year earlier, a Commerce Department's Bureau of Economic Analysis report showed on Friday, and the core PCE price index, which the Fed takes a signal for future price pressures, rose 3.7%. That's down from a 3.8% reading in August but well above the Fed's 2% inflation target.
"Overall, spending remains positive, and inflation is slowing, a welcome combination for policymakers," wrote analysts at High Frequency Economics."We continue to expect a slower pace of growth going forward and a further easing in price pressures, which should keep the FOMC on the sidelines for the rest of 2023."
Traders continue to expect a first Fed rate cut in June of next year, based on interest-rate futures pricing.We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: Include punctuation and upper and lower cases.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Campbell: Owner moves, closes Brown Chicken Brown Cow restaurantArtisanal grass-fed burgers proved a favorite in reader poll
Baca lebih lajut »
US Fed proposes shrinking fees banks charge on debit card transactionsUS Fed proposes shrinking fees banks charge on debit card transactions
Baca lebih lajut »
Strong US economic growth for last quarter likely reflected consumers' resistance to Fed rate hikesThe government is expected to report stellar growth for the U.S. economy during the July-September quarter, highlighting the durability of consumer and business spending despite the Federal Reserve’s efforts to cool the expansion with high interest rates.
Baca lebih lajut »
Fed May Shrink Debit Card Processing FeesThe U.S. Federal Reserve is set to propose slashing the amount of fees banks can charge merchants for processing debit card transactions by nearly a third, setting up a pitched battle between the two industries.
Baca lebih lajut »
Fed Floats Deep Cuts to Debit-Card Swipe FeesMerchants pushed for years to lower fees they pay banks when consumers shop with debit cards
Baca lebih lajut »
Fed to Float Deep Cuts to Debit-Card Swipe FeesMerchants pushed for years to lower fees they pay banks when consumers shop with debit cards
Baca lebih lajut »