Spending and Inflation Moderate in Sign of Cooling Demand, Raising Hopes of End to Fed Rate Hikes
• US consumer spending rose only 0.2% in October, showing signs of cooling demand.
• The annual increase in inflation was 3.0% in October, the smallest since early 2021.
• Growth estimates for Q4 2022 are mostly below 2%, though predictions of a recession have so far not panned out.
• Weekly jobless claims rose slightly, providing more evidence of an easing labor market.
• The moderation in spending and inflation raises optimism the Fed may be done with interest rate hikes.