U.S. consumer prices rose 3.7% over the year through September, while a Reuters poll found all 100 economists surveyed expected a December Federal Reserve rate increase. September’s price data showed gasoline rising 34.2% year over year, while the Federal Reserve has not yet made its October decision.
A measure excluding food and energy increased 2.6%. The energy index gained 20.4%, with gasoline prices up 34.2% over the same 12-month period.
Reuters said its Oct. 16-20 survey found 94 economists expected no change to the Fed’s 3.75%-4.00% target range at its Oct. 27-28 meeting. All 100 respondents projected a rate increase at the Dec. 8-9 meeting. EconoTimes previously covered the survey’s unanimous December outlook. In responses about the rate’s eventual peak, nearly 60% expected a range of 4.00%-4.25%; 38 of 92 respondents anticipated at least two more increases.
The Fed’s September move lifted its target range by 0.25 percentage point in a unanimous 12-0 vote, setting it at 3.75%-4.00%. Reuters also reported that Michael Gapen, Morgan Stanley’s chief U.S. economist, saw risks pointing to the Fed needing to raise rates more than Morgan Stanley expected.
The Fed’s next scheduled meeting is Oct. 27-28, followed by its Dec. 8-9 meeting.
