An inflation gauge closely monitored by the Federal Reserve showed minimal growth last month, indicating a cooling of price pressures following two months of significant increases. The latest report from the Commerce Department revealed a mere 0.1% rise in prices from October to November. Excluding volatile food and energy categories, prices also saw a modest uptick of 0.1%, following two consecutive months of larger 0.3% gains.
These subdued inflation figures come on the heels of the Federal Reserve's announcement that they now anticipate reducing their key interest rate only twice in 2025, down from the previously projected four cuts. Federal Reserve Chair Jerome Powell attributed this shift to the potential impact of persistent inflation, which could prompt the central bank to scale back on anticipated rate cuts, potentially keeping mortgage rates and consumer borrowing costs elevated.
