Last week’s core PCE numbers support comments by Fed officials that there’s no rush to cut interest rates so long as the labor market remains healthy and the economy continues to power ahead.
The core consumer price index increased 0.3% in September, slightly above forecast, leading to questions about whether the Fed will further slow the pace of interest rate reductions.
On a three-month annualized basis, the core PCE price index advanced 1.7%, the slowest this year, reinforcing the wisdom of Fed interest rate cuts next month.