US CPI rose as expected in October, and the Fed may reduce interest rate cuts next year

The U.S. consumer price index rose as expected in October, and the pace of progress toward low inflation since mid-year has slowed, which could lead to smaller interest rate cuts by the Federal Reserve next year. Data showed that the U.S. unadjusted CPI in October was 2.6% annually and 0.2% monthly. Dissatisfaction with inflation helped Republican Trump win the presidential election last week, defeating Democratic candidate and Vice President Harris. However, economists predict that if Trump continues to implement his economic policies, including tax cuts and higher tariffs on imported goods, inflation will rise next year. In addition, Trump has vowed to deport illegal immigrants on a large scale, which economists say will reduce the labor supply and increase costs for businesses, which will then be passed on to consumers. Although the Federal Reserve is expected to cut interest rates again in December, economists believe that there is limited room for further rate cuts next year. (Jinshi)