The Federal Reserve heads into its Oct. 27-28 meeting with U.S. consumer prices 3.7% higher than a year earlier, while a Reuters poll points to a possible December rate increase.
The U.S. Bureau of Labor Statistics said its Consumer Price Index for All Urban Consumers rose 3.7% in September from a year earlier, after a 3.4% annual increase in August. The Fed measures its 2% inflation objective using the personal consumption expenditures price index, rather than the CPI.
The FOMC’s two-day policy session starts Tuesday, Oct. 27. The Fed’s target range is 3.75%-4.00%, following a 0.25 percentage-point increase in September.
Reuters’ survey, conducted Oct. 16-20, found that 94 of 100 economists expected the Fed to leave the target range unchanged at this week’s meeting. All 100 respondents expected an increase at the Dec. 8-9 meeting. EconoTimes previously covered the survey’s unanimous outlook for a December rate increase.
