Analyst: US PCE inflation expectations will support the Fed to continue to cut interest rates by 25 basis points

Analyst Paul Ashworth said in a note that given today's CPI report, the core PCE inflation measure in September is likely to accelerate to 0.2% from 0.1% in August, but the annualized rate "will only be slightly above the Fed's 2% target." PCE data will not be released until the end of the month, and beyond that, tomorrow's PPI report will help adjust expectations. Ashworth said that if his forecast is correct, the pace of inflation "will support a more cautious 25 basis point rate cut by the Fed early next month." (Jinshi)