The Fed's next move will be to cut rates as the drop in inflation was a 'gamechanger,' former PIMCO chief economist says

• The Fed's next rate move will be to cut rates, former PIMCO chief economist Paul McCulley said. 
• McCulley pointed to the drop in shelter prices, which has kept inflation stubbornly high for the past year.
• Some forecasters say the Fed will slash interest rates by nearly three percentage points next year.

The Federal Reserve's next rate move will be a cut, as the drop in inflation seen in October was a "gamechanger" for central bankers, according to former PIMCO chief economist, Paul McCulley.