Get ready for the Fed to resume buying Treasuries–today’s inflation number ends any debate

Think that there’s any chance that the Fed isn’t about to launch Quantitative Easing II? The core CPI, which subtracts volatile energy and food prices, was unchanged for September. That brought year-to-year core inflation down to just 0.8%. That’s the lowest annual rate of core inflation since 1961. The Fed’s target rate of core inflation is 2% to 2.5%.

Good news on jobs and deflation this morning

Good news on jobs and deflation this morning

The economic news is giving the stock market all the help it can this morning to break through the top of the four-month-old trading range at 1127 on the Standard & Poor’s 500. New claims for unemployment fell to 451,000 from 478,000. Economists were expecting a much smaller decline to 470,000 for the week.