The Fed Is Set to Cut Rates, But How Confidently?
Inflation isn’t giving policymakers a reason to hold off this week, but tariffs could create some trouble.
Rolling the dice.
Photographer: Photographer: Al Drago/Bloomberg
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It looks as if we can be certain that the Federal Reserve will cut the fed funds rate this week. That was the universal conclusion from the delayed inflation report for September, and it’s doubtless correct — even though the headline rose to 3%, the very top of the Fed’s target range. This is how inflation breaks down into its key components, as graphed by Bloomberg’s Economic Analysis function (ECAN <GO> on the terminal):