Core CPI has risen 0.3% for the third consecutive month, with no acceleration.
CryptoSlate noted in its headline that cooling inflation keeps the path to a half-point rate cut in December, mentioned by Waller, on the table. That path was originally conditional on criteria set by the policymaker. The report said the latest data broadly align with those criteria, but did not specify the exact thresholds he set.
· The data only show that month-over-month inflation has not heated up further, and that the existing policy scenario has not been ruled out.
· The headline should not be taken to mean that a particular rate cut in December is inevitable.
Would you first compare the three-month average for CPI, or look at the official’s later public comments?
CryptoSlate noted in its headline that cooling inflation keeps the path to a half-point rate cut in December, mentioned by Waller, on the table. That path was originally conditional on criteria set by the policymaker. The report said the latest data broadly align with those criteria, but did not specify the exact thresholds he set.
· The data only show that month-over-month inflation has not heated up further, and that the existing policy scenario has not been ruled out.
· The headline should not be taken to mean that a particular rate cut in December is inevitable.
Would you first compare the three-month average for CPI, or look at the official’s later public comments?
