The Federal Reserve’s preferred measure of inflation held below 3% in September, and indicated a moderate month-over-month increase in prices unlikely to block consideration of an interest-rate cut at the central bank’s meeting next week.

The last piece of official inflation data to land before the Federal Reserve’s policymaking meeting next week was a shutdown-delayed report that showed the pace of price hikes remained stubborn in September and consumer spending waned after a summer splurge.

U.S. stocks rose on Friday after a tame inflation report reinforced expectations that the Federal Reserve will cut interest rates at its final meeting of the year next week.

The last piece of inflation data the Federal Reserve will see before its pivotal December meeting to debate another interest-rate cut showed just a mild increase in wholesale prices even before the government shutdown.

Bond yields have risen in the week since Kevin Hassett's odds to lead the Fed have grown. Sources says bond markets are pricing in more inflation.

Collins also said that rising global risks and fragmentation “tend to depress short-term economic activity, while reducing longer-term growth,” while adding these forces “will likely be major, transformative, and intertwined forces shaping our economic landscape in the coming years.”

Key Takeaways Core PCE inflation, the Fed's preferred gauge of consumer price increases, likely rose 2.9% in September, heading in the wrong direction from the Fed's goal of a 2% annual rate.Although Fed officials are worried about simmering inflation,

Gold prices advanced in Asian trading on Friday, supported by a weaker U.S. dollar and growing confidence that the Federal Reserve will deliver an interest rate cut next week. Traders also kept a close eye on a key inflation reading expected later in the day.