October Inflation Rises to 2.6%, Fed Rate Cut Still Expected

The Wall Street Journal reports that consumer prices in October rose 2.6% year-over-year, a slight increase from September’s 2.4% rate. Core inflation, which excludes food and energy, held steady at 3.3%.  Market reaction was largely positive, with stock futures climbing and Treasury yields falling, as investors hope for continued Fed rate cuts. Markets are now estimating an 80% chance of a quarter-point cut in December. 

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