Fed's preferred inflation gauge gives Jerome Powell green light to cut rates after prices barely budge

Inflation Data Summary - The Federal Reserve's preferred measure of inflation showed little change in September, with prices rising 0.3% from August, the same increase as the previous month [1] - Core prices, excluding food and energy, rose 0.2% in September, matching the previous month's pace, which would align inflation closer to the Fed's 2% target if sustained [2] - Overall prices increased by 2.8% year-over-year, slightly up from 2.7% in August, while core prices also rose 2.8%, a small decline from 2.9% the previous month [2] Economic Indicators - The data suggests muted core inflation in September, supporting the case for a potential interest rate cut by the Fed at its upcoming meeting [3] - Despite inflation being above the 2% target, weak hiring and modest economic growth are expected to gradually reduce price gains in the coming months [3] - Consumer spending grew by 0.3% in September, a decrease from 0.5% in August, indicating that Americans are still willing to spend despite high prices and stagnant hiring [6] Consumer Behavior - Recent data indicates an increase in consumer spending during Black Friday and the following weekend, with online spending rising by 7.7% compared to the same period last year [7] - Incomes rose by 0.4% in September for the second consecutive month, contributing to consumer spending capacity [8]