"PCE Inflation Report: Implications for Fed's Rate Hike Plans"

The October PCE inflation report is expected to show a mild increase in the core rate of inflation, which excludes food and energy. If the forecast is accurate, the annual increase in core inflation would slow to around 3.5%, the smallest increase since April 2021. While the Fed has raised interest rates to slow the economy and curb inflation, there is uncertainty about whether further rate hikes are necessary. Most Fed officials and investors believe that current interest rates are sufficient, but the central bank remains cautious and vigilant against any potential uptick in prices. The PCE report will be released on Thursday morning.