The modest growth of unit labour costs and appreciation of the dollar this year suggest that core inflation is unlikely to rise much further. With inflation quiescent, we expect the Fed to continue raising interest rates gradually, and to move quickly to the side-lines next year as economic growth slows below potential.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services