The Consumer Price Index (CPI) for October came in line with expectations with the shelter component showing persistent stickiness. Nationwide chief economist and senior vice president Kathy Bostjancic joins Morning Brief Hosts Seana Smith and Brad Smith to discuss the print and what it signals about the Federal Reserve's next move in its battle against inflation.

"It came right in line with our expectations and also the consensus. So, no big surprise there. I think what it does is keep the door open for another rate cut in December. Indeed, we're actually going to maintain our call for now that the Fed can go ahead and reduce the fed funds rate another 25 basis points," Bostjancic says.

The economist adds that the data "gives them enough reason to go ahead and ease some of the restrictiveness that is currently in [the] policy, but let me add that it's not a done deal. It's not a slam dunk." She explains, "Part of my hesitancy a little bit is that we continue to see rental inflation remaining quite sticky and elevated ... We had seen some moderation in the previous month at given times, but the fact that it remains, [it's] a little bit elevated. That's a problem because it represents such a big share of core and headline inflation."

She notes, "All in all, we're confident, but it's a cautious confidence."

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This post was written by Naomi Buchanan.