Fed inflation forecast suggests "Trumpflation" is worsening
A new Federal Reserve inflation forecast points to deteriorating core inflation. According to the October update, the core PCE price index, the central bank's preferred gauge, would rise from 3% to 3.05% in September and 3.13% in October. Headline inflation was revised slightly down to 3.75% from 3.77%. The text attributes price pressure to tariffs, which raised goods inflation by 2.9 percentage points through February 2026, and to the closure of the Strait of Hormuz due to the war with Iran.
In 40 seconds
- Core PCE, the Fed's preferred gauge, would rise to 3.05% in September and 3.13% in October, after three months at 3%.
- Forecast headline inflation edges down to 3.75% from 3.77%, per the Cleveland Fed's nowcasting tool.
- A report by three New York Fed economists estimates tariffs raised goods inflation by 2.9 percentage points through February 2026.
Read the full story at AOL.com
IASummary generated by artificial intelligence from a story by AOL.com. It may contain errors: the original source prevails.
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