CPI: This month's reading won't change the calculus for the Fed in the near-term - TDS

Analysts at TD Securities expect the Fed to keep rates on hold in the near term, but to ease further in 2020 as economic growth continues to moderate.

Key quotes

"Core PCE inflation remains below target and inflation expectations continue to hover below the historical levels associated with price stability."

"Headline inflation surprised to the upside at 0.4% m/m (0.356% unrounded) in October, lifting the annual rate to 1.8% y/y (TD and consensus: 1.7%). Stronger than expected food and energy prices at 0.2% and 2.7% m/m, respectively, boosted headline prices."

"We expect the Fed to keep rates on hold in the near term, but to ease further in 2020 as economic growth continues to moderate."