U.S. Consumer Spending Accelerates
Meanwhile, inflation subsides
In October, U.S. consumer spending increased solidly, while inflation pressures moderated, giving the economy a powerful boost at the start of the fourth quarter as it faces rising headwinds from the Federal Reserve's aggressive monetary policy tightening.
The labor market, the economy's other pillar of support, continues to show resilience. The number of Americans filing new claims for unemployment benefits declined last week, almost unwinding the prior week's jump, which had lifted claims to a three-month high.
The reports raised cautious optimism the economy could avoid an anticipated recession next year and that if there was a downturn, it would be short and mild. Fed Chair Jerome Powell said on Wednesday the U.S. central bank could scale back the pace of its interest rate hikes "as soon as December."
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