JPMorgan says Fed likely to stay on sidelines after October CPI

JPMorgan’s Chief U.S. Economist Michael Feroli says the October Consumer Price Index “surprised favorably.” With today’s number, it looks like core Personal Consumption Expenditures for October is tracking a 0.14% gain, which would bring the year-ago figure down to 3.5%, the economist tells investors in a research note. The firm believes the “already-low likelihood” of Federal Reserve rate hike next month is even lower after today’s report. With Q4 core PCE now tracking two-tenths below September, and unemployment a tenth higher, it may be tough for the Fed “to justify offsetting a dovish hold with more hawkish dots,” contends JPMorgan.