Fed Seen On Pause In October After Inflation Cools
Federal Reserve rate hike bets fell after data showed August inflation rose less than expected. The PCE price index increased 3.4 percent over the past year. Traders now see a low chance of an October rate increase.
The United States central bank is expected to hold interest rates steady next month after August inflation rose 3.4%, trailing the 3.7% increase economists anticipated. The cooler price data arrived on the eve of hotly contested national elections in November, easing immediate policy pressure. Markets now price only a one-in-three chance of a rate hike in October, down from previous expectations.
