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U.S. Inflation Eases as Fed Prepares for Potential Rate Cuts

The Federal Reserve faces a complex decision on interest rates amid easing inflation and upcoming jobs data.

  • The U.S. personal consumption expenditures (PCE) price index rose 2.1% in September, nearing the Fed's 2% inflation target.
  • Core inflation, excluding food and energy, increased by 2.7% year-over-year, slightly higher than expected.
  • The Federal Reserve is anticipated to cut interest rates by a quarter-point at its November meeting, with a possible additional cut in December.
  • Upcoming jobs data could influence the Fed's decision, with economists expecting 113,000 new jobs added in October.
  • Market reactions are closely tied to the Fed's decisions and the outcome of the U.S. presidential election, which could impact economic policies.
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