Fed Likely To Pause Rate Cuts Amid Rising Inflation Concerns

According to Odaily, Peter Cardillo, Chief Market Economist at Spartan Capital Securities, indicated that hints of further inflation increases have been largely confirmed in today's data. The tricky part here is the core PCE. This suggests that the Federal Reserve is very likely to pause rate cuts at its next meeting. The likelihood of the Fed pausing rate cuts is higher than ever. Consumer spending remains strong, as evidenced by other macroeconomic indicators. Currently, the economy is performing quite well, but inflation remains an issue, and the core PCE continues to be somewhat elevated. This is a concerning issue, implying that the Federal Reserve may pause rate cuts next week.