MONEY MASTER

US inflation likely moderated at the end of the third quarter, offering reassurance to the Federal Reserve , which is shifting focus towards protecting the labor market . The consumer price index (CPI) is expected to rise 0.1% in September , its smallest gain in three months, and 2.3% compared to a year earlier , marking the sixth consecutive slowdown and the lowest since early 2021. The core CPI , excluding volatile food and energy, is projected to increase 0.2% month-over-month and 3.2% year-over-year . This moderation follows strong September job growth and suggests that policymakers may opt for a smaller interest-rate cut when they meet in November . Fed Chair Jerome Powell has signaled quarter-point rate cuts for the final two meetings of 2024, based on current projections. The CPI and producer price index (PPI) , along with consumer sentiment data, will guide the Fed's approach in the coming months as it balances inflation control with labor market stability.

In the most recent update from the Bureau of Labor Statistics, the core consumer price index (CPI) of the United States demonstrated a minimal increase of 0.1% from May to June 2024, marking the smallest advance since August 2021. This significant slowdown, particularly in housing costs, has reinforced expectations that the Federal Reserve might lower interest rates in the near future. Key Takeaways: Subdued Core Inflation:  The core CPI, which excludes volatile food and energy prices, rose by only 0.1% month-over-month, while the year-over-year figure increased by 3.3%, reflecting the slowest pace in over three years. Overall CPI Decline:  The broader CPI metric declined by 0.1% from the previous month, indicating the first reduction since the pandemic began, largely driven by lower gasoline prices. Impact on Federal Policies:  These developments have buoyed market sentiments, with investors increasingly anticipating a rate cut by the Federal Reserve, possibly as soon as...