Analyst: U.S. PCE Inflation Expectations Will Support Fed Continuing to Cut Rates by 25 Basis Points

Analyst Paul Ashworth said in a report, taking into account today's CPI report, September's core PCE inflation gauge may accelerate to 0.2% from 0.1% in August, but the annualised rate ‘will be only slightly above the Fed's 2% target’.PCE data won't be released until the end of the month, and in addition to that tomorrow's PPI report will help adjust expectations. In addition to the PCE data, which won't be released until the end of the month, tomorrow's PPI report will help adjust expectations. Ashworth said that if his forecasts are correct, the pace of inflation (decline) ‘would support a more cautious 25 basis point rate cut by the Fed early next month’.