Progress in taming inflation slowed in October, but futures market investors think the latest numbers increase the odds of another Federal Reserve rate cut next month
PCE price index shows inflation continued to cool in July, but at a gentle enough pace that Fed policymakers are now seen as likely to only bring rates down by a hair in September
As inflation gets closer to Fed's 2% target, economists at Fannie Mae and the Mortgage Bankers Association predict mortgage rates will continue to drop into the low 6s by the end of next year
The Federal Reserve's preferred inflation gauge fell to 2.56% in May, getting closer to the Fed's 2% target for the 2nd month in a row. Core inflation reading is lowest since March 2021
Mortgage rates have some room to come back down in June after PCE price index shows annual inflation easing to 2.65% in April, and Q1 2024 GDP growth revised downward to 1.3%
The Federal Reserve's preferred inflation gauge moved in the wrong direction last month for the first time since September, but core inflation fell for the 13th consecutive month, to 2.8%
A key Fed inflation metric, the PCE price index, continues to drop toward the Fed's 2% inflation target, falling from 2.6% annual growth in December to 2.4% in January
Futures markets still hold out hope for a March rate cut, even as annual inflation increased to 3.4% in December, moving away from the Fed's 2% goal for the first time since September
While Federal Reserve policymakers had forecast 3 rate cuts next year, futures markets see an 85% chance of at least 6 rate cuts after a key inflation metric shows the economy is cooling rapidly