The broad-based strength in October’s ISM services survey was overshadowed by the increase in the prices paid index to a three-year high, leaving it consistent with “supercore” PCE inflation rising back above 4% in the new year. Nonetheless, with the ongoing government shutdown meaning the Fed likely won’t receive October or November’s official data releases until just before its December meeting at the earliest, we still think the FOMC will view the balance of risks as favouring another 25bp rate cut.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.
