Inflation Stays Stubbornly High, Meeting Fed Expectations

The Federal Reserve's closely monitored inflation gauge, the Personal Consumption Expenditures (PCE) price index, rose to 2.3% year-over-year in October, aligning with expectations. Core PCE, excluding food and energy, increased to 2.8%. Personal income surged by 0.6%, surpassing forecasts, while personal spending slightly slowed but still exceeded expectations. Despite these inflationary signals, market expectations for a December interest rate cut remain unchanged. The U.S. dollar index fell, and stock markets showed little movement ahead of the Thanksgiving holiday.