October rate cut is still a go after OK inflation report, but after that is unclear

Wall Street just got new inflation data, and all is clear for another Federal Reserve rate cut next month. The rate cut outlook after that is a different story. The core reading on the personal consumption expenditures price index, the Fed's preferred inflation metric, which excludes food and energy costs, showed prices increased at a 2.9% annualized pace in August, matching the Wall Street consensus as compiled by Dow Jones. The overall PCE price index rose by 2.7%, also in line with estimates. Expectations for another quarter-point rate cut in October solidified further after the release. The CME Group's FedWatch tool shows traders pricing in an almost 88% chance of a rate reduction next month, up slightly from about 86% a day ago. That said, the outlook for future rate cuts is murkier,