Fed's favorite inflation indicator stayed elevated in September as spending weakened

Core Inflation and Interest Rates - The Federal Reserve's preferred measure of inflation showed little change in September, likely paving the way for an anticipated interest rate cut at the upcoming meeting [1][4] - Overall prices increased by 0.3% in September compared to August, matching the previous month's increase, while core prices rose by 0.2% [2][4] - Year-over-year, overall prices rose by 2.8%, a slight increase from 2.7% in August, while core prices also rose by 2.8%, down from 2.9% [3][4] Consumer Spending and Economic Signals - 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 [7] - Recent data shows a surge in spending during Black Friday and the following weekend, with online spending increasing by 7.7% compared to the previous year [8] - The economy is exhibiting mixed signals, with solid growth despite a rising unemployment rate of 4.4%, and job cuts being reported in certain sectors [9][10] Employment Trends - The ADP reported a loss of 32,000 jobs in November, suggesting that companies are beginning to lay off workers, which could lead to reduced consumer spending [10] - The upcoming government jobs report for November is expected to show a small gain, according to FactSet [10]