Key Square Group founder Scott Bessent and America First Policy Institute chief economist Michael Faulkender discuss former President Trump's policies regarding Kudlow.
Inflation measures closely watched by Fed policymakers continued to slow in September as the pace of price increases trended closer to the Fed's September target.
The Commerce Department said Thursday that the personal consumption expenditure (PCE) index rose 0.2% in September, up 2.1% from the same month last year. These numbers were in line with estimates from economists surveyed by LSEG.
Core PCE, which excludes volatile food and energy prices, rose 0.3% from the previous month and 2.7% from a year earlier, in line with expectations.
While the Fed is focusing on the headline PCE numbers as it tries to bring inflation back to 2%, policymakers consider the core data a better indicator of inflation. Headline PCE fell to 2.1% in September from 2.3% in August, suggesting inflation continues to cool, while core PCE was little changed from a month ago.
US economy grew 2.8% in third quarter, slower than expected
Customers look at food displays at a Costco branch in Colchester, Vermont, on August 16. (Robert Nickelsburg/Getty Images/Getty Images)
According to key PCE data, goods prices fell 1.2% year-on-year in September, while services prices rose 3.7%. Food prices rose 1.2% year-on-year, and energy prices fell 8.1%.
Wages and salaries in September increased by 0.5% from the previous month, the same growth rate as August. This was slightly higher than July's 0.4% and June's 0.2%, but was significantly slower than February's 1.1% wage growth rate.
October jobs report is expected to be released days before Election Day and the Fed's decision to cut rates
The personal savings rate as a percentage of disposable income was 4.6% in September, down from 4.8% in August.
“Core PCE year-over-year growth is up 2.7%, indicating the Fed still has a rocky road ahead in the last mile to curb inflation and declare victory,” said Quincy Crosby, chief global strategist at LPL Financial. This suggests that progress is being made.”
The statistics come as the Federal Reserve prepares to meet next week to discuss its next steps on interest rates.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Market expectations for the Fed to cut rates by 25 basis points remained largely unchanged after the PCE announcement, with traders giving a 95.2% chance of a rate cut a day earlier, as of Thursday morning, according to CME. The probability of a similar rate cut is seen as 94.1%. FedWatch Tool.
