October CPI print may allow Fed to be ‘a notch less’ hawkish

October’s Consumer Price Index (CPI) — which gauges inflation — came out flat month-over-month against expectations of an increase of 0.1%. While the CPI print rose 3.2% year-over-year, core CPI — which accounts for everything but food and energy prices — rose lower than expected at 4.0% year-over-year and 0.2% month-over-month. After another month of cooling inflation data, how will Federal Reserve officials position themselves ahead of their December FOMC meeting?
Wells Fargo Chief Corporate Economist Tendayi Kapfidze and Citi Global Chief Economist Nathan Sheets join Yahoo Finance Live to comment on the trajectory the Fed could take on interest rates and how the course of disinflation is currently looking.
“The Fed was worried that this could be as high as 0.4% and to get a 0.2% increase on the core [CPI] is a very positive development,” Sheets shares, while Kapfidze believes Fed officials need to continue to “fight the last battle [against inflation] until you’re confident that you’ve won it, but they need to be cautious here…”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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