Core Viewpoint - The Federal Reserve's management of interest rates is crucial for balancing economic stimulation and inflation control, impacting consumer spending and stock prices [3]. Interest Rate Management - The Fed adjusts the federal funds rate to influence inflation and unemployment, affecting banks' cost of capital and subsequently the rates consumers pay on loans [2]. - Stable interest rates typically do not lead to significant stock price changes, but investor expectations can cause volatility if they diverge from the Fed's decisions [4][5]. Economic Implications - Leaving interest rates unchanged indicates a strong economy, but there is a risk of inflation returning, which could negatively impact stock prices [3]. - Corporate profits, influenced by interest rates and consumer spending, are the primary drivers of stock prices [9]. Portfolio Adjustments - Investors should reassess their portfolios based on current interest rate expectations and economic conditions, considering long-term strategies over short-term adjustments [6][7][8]. - Maintaining a steady portfolio through economic cycles can be beneficial if the current strategy is effective [8].

🚨UPDATE: U.S. PCE INFLATION HOLDS AT 2.8% YEAR-OVER-YEAR, WITH CORE READING SLIGHTLY BELOW EXPECTATIONS ...

Inflation Improved In September—But Remained High As Spending Slowed, Delayed Data Showshttps://t.co/cY9ybrZ7NZ https://t.co/KgidRDhFtx ...

Consumer Spending - Consumer spending stalled in September [1] Economic Indicators - Inflation remained stubborn [1] Reporting Delays - Report was delayed due to shutdown [1]

Consumer spending stalled in September as inflation remained stubborn, shutdown-delayed report shows.https://t.co/YUv2lvJLIZ ...

US stocks moved higher on Friday as Wall Street digested a cooling in the Federal Reserve's preferred inflation gauge, increasing the odds that the central bank will cut rates next week. The S&P 500 (^GSPC) rose 0.5%, suddenly on the cusp of a fresh record. The Nasdaq Composite (^IXIC) gained 0.7%, eyeing its ninth positive close in 10 sessions. The Dow Jones Industrial Average (^DJI) gained around 0.5%, following a mixed Thursday session for the gauges. Investors continue to bet heavily on a quarter-po ...

WASHINGTON, Dec 5 (Reuters) - U.S. consumer spending increased marginally in September, suggesting a loss of momentum in the economy at the end of the third quarter as a lackluster ​labor market and rising cost of living curbed demand. Consumer spending, which accounts for more than ‌two-thirds of economic activity, rose 0.3% after a downwardly revised 0.5% gain in August, the Commerce Department's Bureau of Economic Analysis ‌said on Friday. Economists polled by Reuters had forecast consumer spending ad ...

US consumer spending stalled in September, suggesting Americans were already stretched going into the government shutdown in the face of stubborn inflation https://t.co/vT1Icgrezx ...

The rate of U.S. inflation stayed stuck close to 3% before the government shutdown, a long delayed report showed, adding a final piece of the puzzle before the Federal Reserve votes on whether to cut interest rates again. ...

U.S. equities opened Friday, December 5, 2025, with a mixed but generally positive tone, as investors digested a flurry of corporate news and awaited crucial inflation data. Major market indexes saw slight gains in early trading, positioning Wall Street near its all-time highs as the week draws to a close. The overarching sentiment remains cautious, however, with a keen eye on upcoming economic indicators and the Federal Reserve's next move on interest rates.Market Indexes Show Modest Opening GainsAs the tr ...