Economists Predict Rate Cut Amid Cool Inflation

Benzinga

U.S. inflation rose 3% last month—cooler than expected—as Trump’s tariffs had limited impact. Economists now expect the Fed to cut rates by 0.25% Wednesday, with another reduction likely in December.

Transcript

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

00:02Labor Department's Consumer Price Index report showed inflation rose 3% last month,

00:06cooler than expected, as Trump's tariffs had a milder impact than predicted, according to CBS News.

00:11Labor Department's Consumer Price Index showed inflation rose 3% last month,

00:15coming in cooler than expected as Trump's tariffs had less impact than forecast.

00:19Economists said the software inflation report likely paves the way for a rate cut on Wednesday.

00:24Scott Elfstein of GlobalX noted that tariff-related price pressures remain limited,

00:28that inflation is not high enough to deter the Fed from easing policy.

00:32According to CME FedWatch, there is a 96.7% probability that the Federal Reserve will cut its benchmark rate

00:38by 0.25 percentage points on Wednesday.

00:40The projection is based on data from 30-day Fed Fund's futures prices.

00:44A third cut is anticipated in December.

00:47For all things money, visit Benzinga.com.

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