WASHINGTON–In another indicator the Fed is likely finished raising rates and could even cut rates some time in 2024, new data show the Personal Consumption Expenditures inflation measure, one of the Fed’s preferred measures, was down 3% in the year through October.
That was down from 3.4% one month prior.
According to the Bureau for Economic Analysis, after removing volatile food and fuel prices, inflation was up by 3.5% over the year, down from 3.7% earlier.
“The latest evidence that price increases are slowing came alongside other positive news for Fed officials: Consumers are spending less robustly,” noted Reuters in its analysis. “A measure of personal consumption climbing by 0.2% from September, marking a slight slowdown from the previous month.”
Fed to Meet in Mid-December
The Fed’s rate-setting Open Markets Committee is next set to meet Dec. 12-13. Credit union economists have been predicting the FOMC will not raise rates again and will instead move to cut rates at some point in 2024.
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