The continued strength of core inflation points to another 75bp rate hike at next week’s Fed meeting and rates may now rise slightly higher than we previously thought. But the FOMC’s new projections are still likely to signal that the end of the tightening cycle is coming into view, and we still expect a sharp fall in inflation to eventually persuade officials to start cutting rates in the second half of next year.
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