Inflation Report Signals December Rate Cut and a Cliffhanger 2026

The Fed's preferred inflation gauge slowed down on an annual basis for the first time since April, BEA data for September showed. Core PCE inflation, which excludes food and energy, ran at a 2.8% annual pace in September, a deceleration from August's 2.9% rate. Monthly core inflation came in at 0.2%, in line with August's numbers. Fed officials should be able to focus on the wavering labor market and cut interest rates by another quarter percentage point at their final meeting of the year next week, thanks ...