U.S. Braces for 3.7% PCE Inflation as Fed Weighs Rates and GDP Seen at 1.7%
Updated
Updated · WRAL News · Oct 24
U.S. Braces for 3.7% PCE Inflation as Fed Weighs Rates and GDP Seen at 1.7%
3 articles · Updated · WRAL News · Oct 24
Summary
Thursday’s PCE report is expected to show inflation accelerated to 3.7% in September from 3.4%, keeping pressure on the Federal Reserve just weeks before the Nov. 3 midterm elections.
Wednesday’s Fed decision is widely expected to leave rates unchanged after September’s hike, though markets still see one more increase in December as policymakers try to curb prices without breaking a softening labor market.
Tuesday’s Conference Board survey is expected to show consumer confidence weakened again in October after plunging in September to its lowest level in more than a decade, reflecting pressure from gas and grocery costs.
Thursday’s first estimate of third-quarter GDP is forecast to show growth slowed to 1.7% from 2.2%, with higher oil prices and stagnant wages weighing on households even as stock gains and AI investment support activity.
The week also brings results from Alphabet, Intel, Amazon, UPS, Coca-Cola, Starbucks, Exxon Mobil and Chevron, offering a read on AI spending and how inflation is hitting profits across the economy.