The Fed may not have gotten what they wanted most, but the PCE data is not enough to change the rate cut outcome this month.
The Federal Reserve may not have received the inflation data it wanted on Thursday, but many economists believe that the new reading of the price indicator most favored by the Federal Reserve may still be sufficient to prompt the Federal Reserve to "cut interest rates by 25 basis points" in a step-by-step manner at its policy meeting next week.
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In the usa, the key inflation rate reached 2.1% in September, consistent with expectations and close to the Federal Reserve's target.
A report released by the US Department of Commerce on Thursday showed a slight increase in inflation in September, approaching the target of the Federal Reserve. The Personal Consumption Expenditures Price Index (CPI) rose by 0.2% after seasonal adjustment, with a 12-month inflation rate of 2.1%, both in line with expectations of the Dow Jones. The Federal Reserve considers personal consumption expenditures as a key inflation indicator, but policymakers also pay attention to various other indicators. Federal Reserve officials have set a target for annual inflation rate at 2%, a level the Federal Reserve has not reached since February 2021. The overall inflation rate in September decreased by 0.2 percentage points compared to August. Although the overall data shows
USA's October Chicago PMI was 41.6, significantly below expectations.
usa October Chicago PMI was 41.6, expected 47, September previous value was 46.6. 50 is the dividing line. Chicago PMI has been below the key threshold of 50 for 11 consecutive months, and the contraction intensified in October.
The initial jobless claims in the usa last week dropped to the lowest level since May, with 0.216 million people.
Last week, the number of people applying for unemployment benefits in the USA dropped to 0.216 million, the lowest level since May. Southeastern states are recovering from the impact of two hurricanes. Economists predict that Federal Reserve officials may ignore the employment report next week and cut rates by 25 basis points.