CNBC Daily Open: U.S. inflation report on Friday will tell if rate cut was a good idea

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Taken from CNBC’s Daily Open, our international markets newsletter — Subscribe today

The U.S. personal consumption expenditures price index for August comes out Friday. The Federal Reserve will hope the report shows headline inflation is either in line or below economists’ forecast of 2.8% for the year. Any higher, and investors might start worrying that the Fed’s quarter-point cut last week was premature and could allow inflation to sink its claws into the economy again.

Indeed, the yields on the 10-year

and 30-year