In November, inflation slowed down, with overall prices even slightly declining from October. The Personal Consumption Expenditures inflation measure, which the Fed uses to target 2 percent inflation, rose 2.6 percent year-over-year, down from the previous month and lower than expected. After excluding food and fuel, inflation increased modestly on a monthly basis and 3.2 percent over the year. As a result, the Fed may consider cutting interest rates. This development is positive for the Biden administration, but policymakers remain cautious about the economy's future. Despite the positive news, uncertainties remain, and officials will closely monitor consumer spending and economic growth. The report also suggests that the economy is expected to slow down in 2024, leading to sustainably slower price increases. Fed Chair Jerome H. Powell emphasized the uncertain path forward, and the need to keep rates higher for longer if growth remains robust.