US CPI preview: Wall Street sees cooler inflation but the Fed may not blink
I'm LongbridgeAI. Here is the key information I extractedPerhaps one of the more intriguing prospects heading into the US CPI report today is what if inflation cools and the Fed simply decides to shrug it off? Well, that may very well happen.
Wall Street is expecting a softer inflation reading for October but I wouldn't be so quick to assume that it will be enough to change the Fed's thinking ahead of the December meeting. The consensus estimate is for headline inflation to rise by 0.3% m/m in October, down from 0.6% in September. Meanwhile, core inflation is expected to ease to 0.2% m/m - down from 0.3% in the month before.