U.S. inflation rate rises to 2.7% in November, Fed cautious about rate cuts

U.S. inflation rose to 2.7% in November, in line with economists' expectations and up from 2.6% in October. The data highlighted concerns about sticky inflation after a rise in October. The Federal Reserve is widely expected to cut interest rates by a third consecutive quarter point next week, but the pace of rate cuts next year is less certain as the Fed struggles to achieve its dual mandate of keeping inflation near 2% and maintaining a healthy labor market. Officials have discussed slowing the pace of rate cuts as interest rates reach a more "neutral" level, high enough to curb inflation but low enough to protect the labor market. They said that if they act too quickly, inflation could stay above the 2% target, but acting too slowly could cause unemployment to rise sharply. (Jinshi)