CPI Report Sparks Optimism For Rate Cuts

Benzinga

U.S. inflation eased in September, strengthening expectations of Fed rate cuts in October and December. Softer energy and housing costs drove the decline, giving policymakers leeway to support a slowing economy.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03U.S. inflation came in softer than expected for September, boosting investor confidence

00:07that the Federal Reserve will begin cutting interest rates according to the street.

00:12The CPI report showed moderating price pressures,

00:15giving policymakers room to focus on a slowing labor market.

00:19Economists expect a 25 basis point rate cut at the October meeting this week,

00:24and a near 100% chance of another in December.

00:27Analysts see this as part of the Fed's insurance cuts

00:31to cushion the economy from slowing growth, tariffs, and weakening hiring.

00:36Easing energy, housing, and transportation costs drove the softer inflation reading,

00:41though economists warn that service and tariff-linked goods prices remain stubbornly high.

00:46For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended