Fed Inflation Data Raises Concerns Over Progress Toward 2% Target

Markets react to flat monthly inflation data, steady GDP growth, and declining jobless claims ahead of Thanksgiving holiday.

The Federal Reserve's preferred inflation gauge, the core PCE index, showed a 0.3% rise in October, matching expectations but raising questions about stalled progress toward the 2% target.
Annual core inflation increased slightly to 2.8% from September's 2.7%, while overall PCE inflation rose to 2.3% from 2.1%.
The U.S. economy's third-quarter GDP growth remained steady at an annualized 2.8%, according to the second estimate, with no revisions expected.
Weekly jobless claims fell to 213,000, marking a seven-month low and signaling continued labor market strength.
Stock market performance was mixed, with the Dow Jones reaching record highs, while the Nasdaq declined, reflecting cautious investor sentiment over inflation and potential interest rate decisions.