0048 GMT - A slightly higher-than-expected U.S. core inflation for August has increased the likelihood of a Fed rate hike being back on the agenda, says GSFM investment strategist Stephen Miller. Just when markets thought the topic might be quashed for good, the question of whether the FOMC does decide on a further policy rate increase is still a finely balanced call, he adds. Even if the Fed were to skip a policy rate hike at next week's meeting, it will seek to inform markets that further hikes remain an option and reinforce the higher-for-longer mantra attached to its recent commentary. That would imply that current Fed thinking doesn't contemplate any policy rate cuts until at least the second half of 2024, Miller adds. (james.glynn@wsj.com; @JamesGlynnWSJ)
(END) Dow Jones Newswires
September 13, 2023 20:48 ET (00:48 GMT)
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