A cooler-than-expected inflation report is likely to give the Federal Reserve the confidence it needs to proceed with a rate cut next week, as markets now fully price in a quarter-point reduction in the federal funds rate.
Inflation rose 3% year-over-year in September, slightly up from August's 2.9% pace but below economists forecasts of 3.1%. Core inflation, which excludes food and energy, eased from 3.1% to 3%, cooling more than expected.
