{"id":2111983,"date":"2023-11-30T10:24:02","date_gmt":"2023-11-30T15:24:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-fell-to-3-in-october-in-feds-preferred-gauge\/"},"modified":"2023-11-30T10:28:25","modified_gmt":"2023-11-30T15:28:25","slug":"inflation-fell-to-3-in-october-in-feds-preferred-gauge","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-fell-to-3-in-october-in-feds-preferred-gauge\/","title":{"rendered":"October saw a 3% decrease in inflation, as per the Fed&#8217;s preferred measure"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-fell-to-3-in-october-in-feds-preferred-gauge%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2111983&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Inflation Cools to 3% Annual\u200c Rate, Providing \u200bEncouragement for the Fed<\/h2>\n<p>In October, inflation took a welcome dip, cooling to a 3% annual rate according\u2063 to \u200cthe Federal\u2064 Reserve&#8217;s preferred gauge. This \u200bmarked a decline of 0.4 percentage points from the previous reading, offering some positive news as\u200b the\u2062 Fed continues\u2062 its efforts to combat inflation through interest rate \u2062hikes. Economists had predicted a slightly higher PCE inflation rate of\u2063 3.1%, making \u2063this decline even more encouraging.<\/p>\n<h3>Progress Made, but\u200d Inflation Still Above Target<\/h3>\n<p>While inflation remains above the Fed&#8217;s goal of 2%\u2062 annual price growth, the report indicates that progress is being made. This development\u200d is also a positive sign\u2062 for the Biden \u200dadministration, which has\u2064 been \u200b<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-holds-steady-at-3-4-in-september-in-feds-preferred-gauge\/\" title=\"September inflation remains stable at 3.4% in Fed's preferred measure.\">highlighting favorable economic indicators<\/a>, such \u2064as low unemployment and strong growth, as evidence of the\u2064 effectiveness of their economic\u2062 agenda. Concerns about stubborn inflation making a comeback have been eased by recent reports, with Chief Economist Jeffrey Roach stating that markets could be pleasantly\u2064 surprised by a faster-than-expected cooling\u2063 of\u200b inflation.<\/p>\n<p>The core PCE inflation, which excludes volatile energy and food prices, dropped to a 3.5% year-over-year rate.<\/p>\n<h3>Other Economic Indicators Holding Strong<\/h3>\n<p>While the\u200b PCE is the Fed&#8217;s preferred inflation measure, the consumer price index (CPI) is more commonly cited. In October, the CPI recorded inflation at 3.2%. Despite inflation&#8217;s significant decline from its peak in the summer of 2022,\u200c other economic indicators have remained surprisingly robust. GDP growth, for example, expanded \u2062at\u200c a strong 5.2%\u2063 seasonally adjusted annual rate in the third quarter,\u200b the highest since the pandemic rebound and 2014.<\/p>\n<p>The labor market has also shown resilience, with\u200d positive employment gains. In October alone, 150,000 jobs\u200c were added to the \u200beconomy.<\/p>\n<h3>Fed&#8217;s Next Meeting and\u2063 Market Expectations<\/h3>\n<p>The Fed&#8217;s upcoming meeting\u200c in mid-December is\u2063 anticipated to maintain the target rate between 5.25% and 5.50%. Investors, as indicated by the CME Group&#8217;s\u2064 FedWatch tool, currently predict a\u200c 96% probability that the Fed will\u2062 not raise rates at this meeting.<\/p>\n<p>Overall, the recent cooling of inflation, along \u200bwith <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-smell-blood-in-the-water-as-democrats-scramble-before-midterms\/\" title=\"Republicans Smell Blood in the Water as Democrats Scramble Before Midterms\">positive economic indicators<\/a>, provides \u200cencouragement for the Fed and the Biden administration, suggesting \u2064that their efforts to manage the economy are yielding favorable results.<\/p>\n<p> <\/p>\n<h2> How\u2062 does the recent decline\u200c in the preferred \u200bgauge of inflation set by the central\u2064 bank give hope \u2063amidst ongoing economic \u2063challenges?<\/h2>\n<p><span>  \u200b The\u2063 latest\u2062 data\u2062 released by the Federal Reserve \u200bon \u200binflation rates\u2063 in October brings with\u2062 it a glimmer of encouragement \u200dfor the policymakers at the \u2063central bank. Inflation has\u200d cooled\u2063 to a \u20623% annual \u200brate, representing a welcome decline of 0.4 \u200cpercentage \u200bpoints from the previous reading.<\/p>\n<p>The figure \u2064not \u200bonly comes as a pleasant surprise but also signifies progress in the efforts of \u2064the \u200cFed \u200dto tackle\u200c inflation through the \u200bimplementation \u200cof interest\u2063 rate hikes. \u200cThis decline in \u2064the \u2063preferred gauge of inflation, as set by \u200cthe central \u2063bank, offers a \u200cray of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/witness-escapes-maine-shooting-by-hiding-in-bowling-alley-machinery\/\" title=\"Witness survives Maine shooting by hiding in bowling alley machinery.\">hope\u2063 amidst<\/a>\u200d the ongoing economic challenges faced by the nation.<\/p>\n<p>Economists had \u2064initially projected \u200ca slightly \u200chigher rate of 3.1% for \u200dthe Personal Consumption Expenditures (PCE) \u200binflation rate, which\u2064 makes this dip in the inflation rate even more encouraging. It showcases\u200c that the measures taken \u2063by the Fed to \u2063control inflation are bearing fruit.<\/p>\n<p>The consistent rise in prices of goods and\u2063 services \u200bhas \u200cbeen \u2063a major concern for the central bank and has prompted \u2064them to adopt a\u200d series of interest rate hikes throughout the year. These\u2063 hikes were implemented with\u200d the aim \u2064of cooling down\u200d the economy, reducing \u2062demand, and ultimately curbing inflation.\u2062 The decline in the \u200dinflation rate suggests that \u2062these measures are \u2063starting to have an impact.<\/p>\n<p>While this decline in \u2062the inflation rate is certainly a \u200dpositive development, caution should still \u2063be exercised \u200das inflation \u2063remains above the central bank&#8217;s \u200dtarget of 2%. It is essential not to\u200c overlook the fact that inflation still poses a significant threat\u200b to the overall stability and growth \u2063of the economy. <\/p>\n<p>However,\u2062 this dip serves as encouragement \u2063for the Fed to continue\u2062 its efforts to combat inflation through its monetary policy. The central bank \u200bcan take solace in the \u2062fact that their decisions and actions are gradually \u2063yielding the \u200ddesired \u2064results.<\/p>\n<p>Moving forward, the central bank will need to carefully \u200bmonitor \u2063inflation \u2062rates to ensure that they remain\u200b on a downward trajectory. This\u200b will involve closely observing market dynamics, closely scrutinizing economic data, and\u200b taking appropriate steps to maintain control over\u2063 inflation.<\/p>\n<p>In conclusion, the recent dip in the inflation rate\u200d to a 3% \u200dannual rate provides \u2062much-needed encouragement for the Federal Reserve. While caution \u2062is still necessary, this decline validates the effectiveness of \u2062the Fed&#8217;s monetary policy measures aimed at curbing inflation. While\u200c the battle against \u2062inflation is far from over,\u2062 this development pushes the central bank to persist in\u2062 its efforts to maintain economic stability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In October, inflation eased to a 3% annual rate, according to the Federal Reserve&#8217;s preferred gauge, dropping 0.4 percentage points from the previous figure. This decline in the personal consumption expenditures price index, reported by the Bureau of Economic Analysis, brings some positive news as the Fed strives to combat inflation<\/p>\n","protected":false},"author":1,"featured_media":2111984,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2111983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2111983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2111983"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2111983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2111984"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2111983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2111983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2111983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}