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Fed’s Preferred Inflation Gauges Cool, Reinforcing Rate-Cut Tilt
The Federal Reserve’s preferred gauge of underlying inflation barely rose in November and trailed policymakers’ 2% target by one measure, reinforcing the central bank’s pivot toward interest-rate cuts next year. The so-called core personal consumption expenditures price index, which strips out the volatile food and energy components, increased 0.1% from a month earlier after a downwardly revised 0.1% gain in October, according to the Bureau of Economic Analysis. From a year ago, the Fed’s preferred gauge of underlying inflation advanced 3.2%. On a six-month annualized basis, the core metric rose 1.9%, the ... (full story)