Inflation Climbs to 3%—But Fed Is Still Expected To Cut Rate
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While a Fed rate cut is big news, consumers might only be expected to see slight relief when it comes to much borrowing.
US stocks surged to record highs on Friday as investors digested a crucial inflation report that helped cement expectations for the Federal Reserve’s next policy moves. The September inflation data released on Friday morning came in cooler than expected.
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The softer-than-expected CPI report cemented expectations that the Federal Reserve will lower interest rates next week, but nothing is certain for December, economists said. Richard Moody, chief economist at Regions Financial,
The Federal Reserve will lower its key interest rate by 25 basis points next week and again in December, according to a Reuters poll of economists who remain deeply divided on where rates will be by the end of next year.
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