>> ERIC: SEPTEMBER INFLATION DATA WAS RELEASED THURSDAY AND TICKED SLIGHTLY HIGHER THAN ECONOMISTS FORECASTED.

THIS FOLLOWS AN INTEREST RATE CUT FROM THE FEDERAL RESERVE IN SEPTEMBER.

DESPITE THAT, WE COULD STILL SEE ANOTHER SMALLER RATE CUT IN NOVEMBER, BUT THE IMPACT AND RIPPLE EFFECTS OF HURRICANE HELENE AND MILTON ARE STILL BEING ASSESSED.

ADD IN THAT THE ECONOMY IS A TOP ISSUE FOR LIKELY VOTERS, AS PER A KSTP POLL, AND THERE'S A LOT TO TALK ABOUT WITH OUR NEXT GUEST.

CHRIS FARRELL COVERS ECONOMICS FOR AMERICAN PUBLIC MEDIA.

CONSUMER PRICE INDEX, MODERATING, NOT AS MUCH AS EXPECTED, AND IB FLAITION IS STUBBORN.

IS THAT KIND OF WHERE WE'RE AT?

>> THAT'S KIND OF WHERE WE'RE AT.

BUT THE OVERALL INFLATION RATE IS MOVING IN THE RIGHT DIRECTION.

WE'RE GETTING DOWN TOWARD THE FEDS TARGET RANGE OF 2%.

THE HEMMINGSEN-JAEGER NUMBER WAS A GOOD NUMBER.

BUT WHEN THEY'RE LOOKING AT THE CORE INFLATION, WHICH IS THE NUMBER THAT SOMETIMES CAN DRIVE PEOPLE CRAZY BECAUSE YOU TAKE OUT ENERGY AND FOOD, WHICH IS, LIKE, WHAT ELSE IS THERE?

BUT THE CORE INFLATION GIVES YOU AN IDEA OF WHAT'S HAPPENING TO PRICES IN THE SERVICE SECTOR, WHEN -- IT JUST KIND OF GIVES YOU A BETTER SENSE.

AND CORE INFLATION, YOU KNOW, IT WASN'T AS GOOD AS EXPECTED.

SO WARY?

ODDS ARE THAT THE FED MAY NOT CUT AT ITS NEXT MEETING.

IT'S RIGHT NOW I SAY THE OPINION'S HALF-HALF DIVIDED.

>> Cathy: THIS MIGHT SEEM LIKE A QUESTION YOU MIGHT NOT WANT TO WEIGH INTO -- >> IF YOU ASK IT, I WILL WEIGH IN.

>> Cathy: I SHOULD KNOW THAT.

I'M NOTICING CAMPAIGN SIGNS, LAWN SIGNS, IT'S ABOUT GAS AND GROCERIES, YOU KNOW, VARIOUS CANDIDATES MAKING THE ARGUMENT THAT IF YOU ELECT THEM THEY WILL LOWER THOSE PRIZES.

I MEAN, REALLY?

>> RIGHT, THAT'S THE RIGHT -- THAT'S EXACTLY RIGHT.

REALLY?

YOU'RE NOT GOING TO BE DOING MUCH.

I MEAN, THE STORY OF THIS ECONOMY RIGHT NOW IS THAT THIS IS A REALLY GOOD ECONOMY.

BY SO MANY MEASURES.

UNEMPLOYMENT RATE, 4.1%.

STRONG JOB GROWTH.

WE'RE STILL GROWING.

PRODUCTIVITY, DOING MORE WITH LESS.

KIND OF FUNDAMENTAL BUILDING BLOCK OF LIVING STANDARDS, THAT'S RUNNING AT A MUCH HIGHER RATE THAN IT WAS SEVERAL YEARS AGO.

NEW BUSINESS FORMATION, I MEAN, REALLY STRONG.

SO YOU LOOK AT A LOT OF THOSE THINGS AND YOU GO THIS IS A REALLY GOOD ECONOMY, ONE OF THE BEST ECONOMIES SINCE THE LATE 1990s.

THE PROBLEM IS, YOU'RE THEN LOOK AT YOUR HOMEOWNER'S INSURANCE.

YOU LOOK AT THE PRICE OF HOUSING.

YOU GO TO THE GROCERY STORE.

AND NOW, YOU KNOW, EGG PRICES HAVE COME DOWN, AND BOUNCED UP A LITTLE BIT RECENTLY, BUT OVERALL, YOU'RE JUST AWARE OF HOW EXPENSIVE THINGS ARE.

YOU GO TO A RESTAURANT AND IT'S VERY EXPENSIVE.

AND SO THESE PRICE INCREASES, YES, THE OVERALL RATE OF INFLATION IS COMING DOWN, IT'S GOING IN THE RIGHT DIRECTION, WE'RE STARTING TO SEE DISCOUNTS IN THE AUTOMOBILE INDUSTRY.

RESTAURANT CHAINS ARE STARTING TO OFFER DISCOUNTS BUT THIS TAKES TIME TO UNFOLD.

>> Eric: ARE YOU SEEING INSURANCE RATES JUST GENERALLY GOING ONE THE TWO HURRICANES AND OTHER KINDS OF OTHER NATURAL DISASTERS THAT HAVE HAPPENED?

>> WHAT'S BEEN GOING LIKE WITH FLORIDA AND CALIFORNIA THAT YOU WOULD HIGHLIGHT WITH A LOT OF THE MAJOR INSURANCE COMPANIES JUST PULLING OUT -- >> Eric: BUT THE RISK GETS SPREAD OUT.

>> THE SAFE FORECAST IS, YOUR HOMEOWNERS' INSURANCE RATES ARE GOING TO GO UP.

THAT'S WHAT'S GOING TO HAPPEN.

AND THAT'S PART OF THE EFFECT.

AND YOU HAD MENTIONED BY THE WAY, IT IS GOING TO BE HARD TO KNOW WHAT EXACTLY IS GOING ON WITH THIS ECONOMY.

I MEAN, WITH FLORIDA AND NORTH CAROLINA, THE UNEMPLOYMENT RATE, WE SAW A BIG JUMP IN INITIAL UNEMPLOYMENT CLAIMS, PROBABLY COMING FROM THE EFFECT THERE.

SO HOW STRONG IS THE ECONOMY REALLY?

IT'S GOING TO BE -- THE FEDS GOING TO BE HAVING TO MAKE SOME REAL JUDGMENT CALLS HERE WITH DATA THAT IS VERY, VERY MIXED.

>> Cathy: I'M WONDERING THEN BEFORE YOU GO, WHAT WILL YOU BE LOOKING FOR HERE AS WE HEAD INTO THE ELECTION WHEN IT COMOZ TO THE ECONOMY?

>> SO WHEN IT COMES TO THE ECONOMY, YOU KNOW, YOU WANT TO SEE MORE DISCOUNTING GOING ON.

MORE OBVIOUS SIGNS OF DISCOUNTING.

YOU WANT -- AND ALSO WHAT I REALLY WANT TO SEE IS WHAT HAPPENS TO THE JOB MARKET WITH ALL THE CHANGES THAT ARE GOING ON.

AND ALL THE UNCERTAINTY THAT'S OUT THERE.

AND, YOU KNOW, THIS HAS BEEN A STRONG JOB MARKET, CONTINUES TO BE A STRONG JOB MARKET.

AND SO I THINK COMING -- MOST PEOPLE'S VISION OR THE WAY THEY LOOK AT THE ECONOMY, IT'S PROBABLY BAKED, SO HE ONLY THING WOULD BE, IF WE END UP WITH SOME BAD JOB NUMBERS, THAT AY CHANGE SOME