0.5 percentage point increase possible... KPMG forecasts strong US PCE
Original headline0.5%포인트 인상 가능성…KPMG, 미 PCE 강세 전망
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KPMG flagged a possible 0.5 percentage-point Federal Reserve rate hike in December after October core CPI rose 0.3% month-over-month for a third straight month, with headline CPI up 0.4% versus 0.6% in September. The firm's US chief economist Diane Swonk said CPI components point to a strong October PCE reading and that hawks advocating tighter policy are gaining influence inside the Fed. Shelter costs rose 0.3% and accounted for a large share of the monthly headline increase. The call matters because it keeps a larger December hike on the table even as headline inflation slowed from September. Watch the October PCE release for confirmation of KPMG's forecast and any shift in Fed commentary on the December move.
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Named in this story
Federal Reserve, KPMG, Diane Swonk, US Bureau of Labor Statistics