US inflation fell to 2.4% in September which provides much needed positive news for Kamala Harris on the upcoming election.
US inflation fell to 2.4 per cent in September but still exceeded expectations, cementing expectations that the Federal Reserve will cut interest rates by a quarter point at its next meeting in November.
US business news got a much needed boos from the Bureau of Labour Statistics was below August’s 2.5 per cent annual increase but above economists’ expectations of 2.3 per cent. The figure, the last before the November 5 presidential election, came after the Fed cut rates by a larger-than-usual half point last month amid signs that it was succeeding in its battle to tame price pressures.
After the release of the inflation data, as well as figures showing a jump in joblessness, investors increased their bets on a quarter-point cut at the November Fed meeting.
Markets were pricing in a roughly 90 percent chance of such a cut in November following the data, compared with 80 per cent beforehand.