The unexpectedly hot inflation reading complicates the prospect of further rate cuts from the Fed.
This index was expected to see a year-over-year increase of 2.3%, a cooler rate than August's 2.5%.
The surprisingly hot inflation reading is a sign that the economy is running strong, and complicates the Fed's next rate decision, since in theory higher inflation would make further cuts less likely.
AdvertisementThat could be because the market also digested weekly jobless-claim figures that came in higher than expected.
Following a surprisingly strong September jobs report, speculation rose that the Fed might slow its pace of rate cuts — or even stop them altogether.
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