US inflation slows more slowly than expected to 8.2%
US inflation slows to 8.2% and sits just above market analysts' expectations.
US inflation only ticks down to 8.2% and remains just above market analysts' expectations.
Today, October 13, the U.S. Bureau of Labor Statistics published the long-awaited inflation figures for September. According to these figures, inflation in the United States is running at 8.2% year over year. Analysts had expected 8.1%. This means inflation is continuing to fall from last month.
Will the Fed keep its monetary policy course?
In August, inflation fell to 8.3%, but by less than expected. This time, inflation fell less than forecast as well. That suggests the Fed’s tight monetary policy is likely to continue. The market consensus for a rate hike is currently 0.75. The Federal Reserve will make the actual decision on the key federal funds rate on November 2.
The Fed wants to hold the line on rates
Earlier this month the UN warned the Fed against further rate increases given the worsening global economic situation. Yet the minutes of the September Fed meeting, released yesterday, showed the central bank basically wants to stick with the tight rate. Some members noted in the minutes that "any potential adjustments if economic uncertainty rises would be important to help soften the negative effects on the outlook."
