Underlying inflation pressures eased in October, NY Fed says
TJM Institutional Services Director James Iuorio analyzes Q3 earnings and the Fed's ability to control inflation and future rate decisions.
The underlying inflation pressures hitting U.S. consumers eased in October compared to September, according to a new report released by the Federal Reserve Bank of New York on Monday.
The New York Fed said its multivariate core trend (MCT) inflation reading came in at 2.6% in October, down slightly from September’s 2.88% reading. The bank said the higher level of the MCT compared to its pre-pandemic average «is in large part due to the sector-specific trends in housing and services ex-housing.»
The New York Fed’s MCT index aims to measure the persistence of inflation and how broadly inflationary pressures on consumer prices are changing. The MCT index peaked at 5.44% in June 2022, and the October reading closely matched the six-month trend of the personal consumption expenditures index – the Fed’s preferred inflation gauge – which stood at a 2.5% rise in October.
ECONOMY TO SLOW IN 2024, ECONOMISTS SEE 50% RECESSION ODDS: NABE
Underlying inflation pressures facing American consumers have eased somewhat, according to a report by the New York Fed. (FREDERIC J. BROWN/AFP via Getty Images) / Getty Images)
The report comes as central bank officials weigh economic data ahead of the Fed’s final policy meeting of the year, which is set to occur next week on Dec. 12-13 and could bring another interest rate hike or a continued pause.
Federal Reserve officials have sought a «soft landing» for the U.S. economy since the current inflationary cycle accelerated dramatically in 2022, peaking at a 40-year high of 9.1% in June 2022 before gradually declining to 3.2% in October 2023 – which remains
Read more on foxbusiness.com
