U.S. consumer inflation tame, labor market still tightening

WASHINGTON - U.S. consumer prices were unchanged in September and underlying inflation retreated, supporting expectations the Federal Reserve will cut interest rates in October for the third time this year amid risks to the economy from trade tensions.

The longest economic expansion on record, now in its 11th year, is under threat from the 15-month-old U.S.-China trade war, slowing growth overseas and a likely disorderly exit from the European Union by Britain. The trade war has undermined business investment and helped to drive manufacturing into recession. Growth is also being restricted by the fading stimulus from last year’s $1.5 trillion tax cut package.

Excluding the volatile food and energy components, the CPI climbed 0.1% after gaining 0.3% for three straight months. The so-called core CPI was restrained by moderate gains in healthcare costs, as well as declines in apparel, new motor vehicles and communications prices. In the 12 months through September, the core CPI increased 2.4%, matching August’s rise.

The Fed cut rates by a quarter point last month after reducing borrowing costs in July for the first time since 2008. A further reduction is expected at the Oct. 29-30 meeting. Economists expect inflation will pick up and breach the Fed’s target in 2020 following the recent broadening of U.S. tariffs on Chinese goods to include a range of consumer goods. A tightening labor market is also expected to support inflation.

Core is 2.4% two months in a row.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

U.S. consumer inflation muted; labor market tighteningU.S. consumer prices were unchanged in September and underlying inflation retrea... I beg to differ.... There are Tons of cruddy jobs to be filled in the US.... As they are filled, Trump will bestow upon himself Ample credit for “great jobs” being created, making “really bad people work for their unjust rewards....
Источник: Reuters - 🏆 2. / 97 Прочитайте больше »

Decreasing U.S. job openings point to cooling labor marketU.S. job openings fell to a 1-1/2-year low in August and hiring declined, sugges... I’m confused. The argument forever was we NEEDED the illegal immigrants or we would have multiple unfilled positions. Now that the border isn’t being barraged it is now the opposite? Whatever reports hurt Trump the most. We get it. ;) I know the biased MSM would LIKE our economy to slowdown so they can blame realDonaldTrump, but stop trying to make it happen. Choose country over politics. TDS And or full employment. Not going to put out a hiring ad if I think everyone is taken
Источник: Reuters - 🏆 2. / 97 Прочитайте больше »

Three before you leave — What to watch for in the market Thursday including trade talks, inflationAll eyes will be on the high-stakes U.S.-China trade talks, but expectations are low on Wall Street. I'll sum it up: Trade talks will end in failure. So far any talk are stupid for Chinese!
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »