US consumer spending, incomes rose in October
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WASHINGTON — U.S. consumers boosted their spending again in October, while their incomes increased at the fastest clip in six months. A key gauge of inflation watched by the Federal Reserve posted the fastest 12-month gain in two years.
Consumer spending increased 0.3
An inflation gauge closely followed by the Federal Reserve increased 1.4
The inflation gain marked the strongest pace since prices had risen 1.5
"These readings continue to move closer to the Fed's 2
He predicted inflation would begin to run above 2
Because of this, Daco predicted the Fed would be pushed to a slightly faster pace for raising interest rates. He forecast two rate hikes in 2017 and three in 2018.
The 12-month increase in the Fed's preferred inflation target was a tiny 0.3
The central bank is widely expected to increase the rate by a quarter-point at its December meeting, a year after it raised rates for the first time in nearly a decade.
With incomes rising faster than spending, the saving rate jumped to 6
The rise in spending reflected a 1
Spending is closely watched since it accounts for more than two-thirds of economic activity. The overall economy grew at a solid 3.2
This headline on this story has been corrected to show that the latest consumer spending report was for October, not September.