Inflation Data Gives Fed Doves Stronger Hand for Rate-Hike Downshift
- Latest data reinforce case for half-point hike this week
- Softer November CPI is a second month of ‘good news’ on prices
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The latest evidence of cooling inflation not only reinforced the Federal Reserve’s likely decision for a smaller interest-rate hike this week — it also bolsters the hand of dovish officials to push for a further downshift and then go on hold.
A key gauge of the US consumer price index — so-called core inflation, which excludes food and energy — posted its smallest monthly advance in more than a year last month, according to a Labor Department report published Tuesday. The moderation was broad-based, with an indicator of services prices favored by Fed Chair Jerome Powell also decelerating.