Consumer spending increased by the most in seven months in October, but underlying price pressures slowed, with an inflation measure tracked by the Federal Reserve…
Consumer spending increased by the most in seven months in October, but underlying price pressures slowed, with an inflation measure tracked by the Federal Reserve posting its smallest annual increase since February.
The strong consumer spending reported by the Commerce Department on Thursday probably keeps the central bank on track to raise interest rates next month for the fourth time this year. But moderating inflation, if sustained, could temper expectations on the pace of rate hikes in 2019.
Fed Chair Jerome Powell on Wednesday appeared to signal the central bank is nearing an end to its interest-rate hikes, saying its policy rate was now “just below” a level that neither brakes nor boosts a healthy economy.
