U.S. PCE Inflation Holds at 2.8% as Spending Keeps Economy Expanding
U.S. personal consumption expenditures price index rose 0.2% in November, leaving inflation at 2.8% for both headline and core (October was 2.7%), with energy costs up and food flat. Personal income rose modestly, while spending climbed 0.5% in October and November. The saving rate edged up to 3.5% in November. GDP growth for Q3 was revised to 4.4%, and jobless claims remain near two-year lows, signaling continued spending resilience. Investors expect the Fed to hold rates at the upcoming meeting, with futures pricing in up to two rate cuts later this year.