October's increase in the core PCE (personal consumption expenditure) price index is expected to hang out at +0.3% month-over-month, the same as in September, according to economists' consensus. It highlights the difficulty in wringing the last bit of disinflation out of the current inflation rate to bring it down to the Federal Reserve's 2% goal.

Investors will be closely watching a fresh reading on inflation for clues on the Fed's interest rate-cutting path.

A stock-market rally boosted by President-elect Donald Trump’s victory is set to put upward pressure on the Federal Reserve’s preferred inflation gauge, which in turn could keep interest rates elevated.

Several policymakers said they were less worried about an economic slowdown than they had been in September, when the Fed kicked off its rate-cutting cycle.

Federal Reserve officials discussed potentially slowing down or pausing interest-rate cuts if progress on lowering inflation stalled out when they met earlier this month. Officials thought that if the economy performed in line with their expectations that inflation would continue to decline steadily,

Many” senior Federal Reserve officials said a more gradual approach to reducing interest rates was warranted in light of ongoing uncertainty about the U.S. economy and the appropriate level of borrowing costs,