Fed Seen Headed for More Rate Cuts as Inflation Undershoots Expectations
Traders bet that the Federal Reserve will deliver quarter-point interest rate cuts at each of its next three meetings.
This comes after a US government report showed that consumer inflation rose less than expected last month. The Consumer Price Index climbed 3% in the 12 months through September, according to the Labor Department's Bureau of Labor Statistics.
The increase was a tick up from 2.9% in August but below the 3.1% expected by economists polled by Reuters. Analysts say this may give even the central bank's more hawkish policymakers comfort that continuing to ease borrowing costs to support the labour market won't reignite inflation.
The Consumer Price Index climbed 3 per cent in the 12 months through September.
Author's summary: Fed to cut rates due to low inflation.