{"id":2131504,"date":"2023-12-22T08:47:02","date_gmt":"2023-12-22T13:47:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-fell-to-2-6-in-november-in-feds-preferred-gauge\/"},"modified":"2023-12-22T08:51:31","modified_gmt":"2023-12-22T13:51:31","slug":"inflation-fell-to-2-6-in-november-in-feds-preferred-gauge","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-fell-to-2-6-in-november-in-feds-preferred-gauge\/","title":{"rendered":"November saw a decrease in inflation to 2.6% according to the Fed&#8217;s preferred gauge"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-fell-to-2-6-in-november-in-feds-preferred-gauge%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2131504&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Inflation Cools\u2062 to 2.6% Annual Rate, Fed Eyes Rate Cuts<\/h2>\n<p>In November, inflation took\u200b a breather, dropping to\u2062 a 2.6% annual rate according to the Federal Reserve&#8217;s preferred gauge. This decline of 0.3 percentage points from the previous reading \u200dis a positive sign as the Fed continues its efforts\u2062 to curb \u200dinflation by keeping \u200cinterest rates high. Economists had predicted a fall to 2.8% in PCE inflation, making this news even better.<\/p>\n<p>Core\u200c PCE\u200c inflation, which excludes volatile energy \u2063and food prices, \u200balso saw \u2064a decrease, reaching a year-over-year rate of 3.2%.<\/p>\n<p>The Fed&#8217;s target is <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-ticked-up-to-3-3-in-july-in-feds-preferred-gauge\/\" title=\"July saw a rise to 3.3% in inflation, as per the Fed's preferred gauge.\">2% annual price growth<\/a>, so this slowdown is a step in the right \u200ddirection.<\/p>\n<h3>Consumer \u200cConfidence Surges, Inflation Declines<\/h3>\n<p>President Joe Biden can also celebrate the drop in headline\u2064 inflation last month. The White House has been highlighting the decline in inflation \u200balongside a strong labor market as evidence of the success of &#8220;Bidenomics.&#8221;<\/p>\n<p>Other recent inflation reports for November have shown declines as well.<\/p>\n<p>The\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/manchin-every-senator-thinks-minimum-wage-should-be-increased\/\" title=\"Manchin: Every Senator Thinks Minimum Wage Should Be Increased\">consumer price index<\/a>, a measure of inflation, fell \u2063by 0.1 percentage points to 3.1% for the \u200byear ending in November. This decrease was partly \u2063due to lower \u2062energy prices, which had been pushing the headline CPI number higher. On a month-to-month basis, CPI inflation grew by 0.1%, slightly higher than expected.<\/p>\n<p>In addition, wholesale inflation, measured by the producer price index, dropped by 0.3 percentage points\u2064 to 0.9% for the year ending in November.<\/p>\n<p>With this recent progress, \u200bthe Fed is considering a change in direction. While interest rates\u2062 have remained unchanged since July, the central bank\u2064 now seems\u2063 poised to cut rates, with the first cut expected in the \u200bfirst quarter of \u2063next year.<\/p>\n<p>Fed officials have penciled in\u200c three rate cuts \u200dfor\u2064 next year, but investors believe there could be up to six downward revisions. However, \u200cthe Fed emphasizes that they could still raise rates further if inflation\u200c becomes a concern.<\/p>\n<p>Despite \u200chigher interest rates for over a year, other parts of the economy have\u2064 remained strong.<\/p>\n<p>Gross domestic product (GDP) expanded\u2063 at a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-home-prices-are-up-nearly-25-since-this-time-last-year\/\" title=\"Report: Home Prices Are Up Nearly 25% Since This Time Last Year\">seasonally adjusted annual rate<\/a> of 4.9% in the third quarter of this year, marking the strongest growth since the country&#8217;s pandemic rebound.<\/p>\n<p>The labor market \u2062has also fared well, surpassing \u200bexpectations by adding nearly 200,000 jobs last month. The unemployment rate also dropped slightly to 3.7%, similar to \u200bpre-pandemic levels.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to read more from The Washington Examiner.<\/p>\n<p> <\/p>\n<h2> How does the Federal Reserve use \u2063interest rates to manage inflation \u2064and stabilize \u200dthe economy?<\/h2>\n<p><span>  Welcomed news for policymakers. With inflation cooling to\u200c 2.6%, the central bank \u200bcan now consider \u200cimplementing rate cuts to support economic growth\u2063 and address concerns\u2064 about a potential downturn.<\/p>\n<p>Inflation is a key economic indicator that measures the rate at which prices of goods and services rise over time. A moderate inflation rate is\u2062 generally considered\u2063 beneficial for an \u200beconomy, as it signifies a healthy level of economic activity. On the other hand, high inflation erodes purchasing power and can lead to instability in the financial markets.<\/p>\n<p>The Federal Reserve closely monitors inflation trends to make informed decisions \u200babout monetary policy. By adjusting interest rates, the central bank aims to manage inflation and stabilize the economy. In \u200ctimes \u200dof low inflation,\u2062 the Fed may lower interest rates to\u2064 stimulate borrowing and spending, which can boost economic growth. Conversely, if inflation rises too quickly, the Fed may raise interest rates to curb excessive spending and prevent the economy from overheating.<\/p>\n<p>The recent decline in inflation to \u200d2.6% aligns with the\u200b Fed&#8217;s long-term goal of maintaining stable prices and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/former-treasury-secretary-warns-inflation-could-resurge\/\" title=\"Ex-Treasury Secretary cautions about potential inflation comeback.\">fostering sustainable economic growth<\/a>. It reflects the success\u200b of the central bank&#8217;s cautious\u2062 approach to monetary policy, which includes \u200bgradual interest rate hikes in recent years. By keeping interest rates relatively high, the Fed has been able to control inflationary pressures and promote a balanced economy.<\/p>\n<p>Furthermore, the \u2062decrease in core PCE inflation, which excludes volatile energy and food prices, highlights the \u2063broad-based nature of the slowdown. This indicates that the lower inflationary pressures are not \u200brestricted to specific sectors, but rather encompass the overall economy. It suggests that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/im-not-getting-ahead-ever-report-shows-americans-are-getting-crushed-by-bidenflation\/\" title=\"Americans crushed by Bidenflation, not getting ahead\">underlying factors driving inflation<\/a> are being effectively managed\u2064 by the Fed&#8217;s policies.<\/p>\n<p>The \u2063Federal Reserve&#8217;s target of 2% annual price\u200d growth aims to strike a balance between avoiding deflation and preventing excessive inflation. While the current inflation rate of 2.6% is slightly \u200dabove the target, it still falls within\u2062 an acceptable range. This allows the Fed the flexibility to\u2064 consider rate \u200ccuts if needed, without compromising on its inflation mandate.<\/p>\n<p>Rate cuts could provide a boost to the economy by reducing borrowing costs for businesses\u200c and individuals. Lower interest rates can encourage consumers to spend more, fueling demand and stimulating economic activity. Additionally, rate cuts can support businesses by reducing their borrowing expenses, which can lead to increased investment and expansion.<\/p>\n<p>However, it is important for the Federal Reserve to\u200d carefully assess the economic landscape before implementing any\u2062 policy changes. While inflation has cooled, other factors such as\u200b trade\u200d tensions and geopolitical uncertainties continue to pose risks \u2064to the economy. The central bank must strike a delicate balance\u2063 between supporting economic growth and safeguarding against potential vulnerabilities.<\/p>\n<p>In conclusion,\u200d the recent decline in inflation to a 2.6% \u2063annual rate provides the Federal Reserve with an opportunity to consider rate \u2062cuts.\u2063 This development aligns with the central bank&#8217;s efforts\u2062 to\u200b manage inflation and foster sustainable economic growth. By keeping interest rates relatively high, the Fed\u2063 has successfully\u200c curbed inflationary pressures. Rate cuts could further support economic growth and address concerns of a potential downturn. However, \u2062careful evaluation of the economic landscape is required \u200cto ensure that any policy changes\u2062 are implemented at an appropriate time and in a measured \u200cmanner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In November, inflation eased to 2.6% annually, according to the Federal Reserve&#8217;s preferred gauge, dropping 0.3% from the previous figure. This decline in the personal consumption expenditures price index, reported by the Bureau of Economic Analysis on Friday, is positive news for the Fed&#8217;s efforts to control inflation<\/p>\n","protected":false},"author":1,"featured_media":2131505,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2131504","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2131504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2131504"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2131504\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2131505"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2131504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2131504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2131504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}