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Prices for core services excluding housing increased 0.4% in October, with the annualized rate over the past three months approaching 5.5%. Colby Smith reported that these figures are watched by Federal Reserve officials as a gauge of underlying inflation.
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Earlier this month, Warsh’s remarks in Bangkok indicated no urgency to raise U.S. interest rates in October, supporting expectations that the Federal Reserve would hold steady at its upcoming decision. Colby Smith also highlighted that the Fed’s consensus could fracture at the October meeting if officials decide to keep rates unchanged after a long period of unity. These developments come as policymakers assess new inflation data.