Consumers and the Fed agree – inflation is slowing.
And it’s leading people to think we could see more rate cuts.
Short-term inflation expectations dropped in October.
They were down 0.2 points, to 2.3%.
This is the lowest reading since June 2013, when the series started.
Inflation expectations are a central component of the Fed’s interest policy.
When expectations decline, it’s hard to hit the 2% annual target.
Last month, wages were up 3%. Inflation was at 1.7%. Well below the mark.
“We still think there’s a chance the Fed cuts again before the end of the year.”
Do you think the Fed will drop rates before 2020?
Yes or No?
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