Market interest rates have moved higher even as the Fed is on hold.

More of the same kind of economic data is expected this week. The inflation data is forecast to rebound from the declines reported for September, but the year-over-year result is expected to remain unchanged. The core rate for the CPI has increased by 2.4% over the last twelve months, while the PPI core rate is up 1.6%. Taken together, inflation is running just below the Fed’s stated target of 2%. Tighter labor markets have not driven labor costs up as one would have expected and kept pressure on higher pricing low. Tariffs have not been passed on to end prices as companies have been willing to accept lower margins by covering the costs of tariffs.