The core PCE, the Fed's preferred measure of inflation, rebounded as expected in October to 2.8 per cent a year, suggesting that while prices have slowed, they remain sticky. The core PCE rate has continued to approach 3 per cent a year, rather than 2 per cent, complicating the Fed's forthcoming decision. The Fed began a rate-cutting cycle in September when it cut rates for the first time in response to signs of a cooling economy. But progress on inflation has stalled in recent months, making it possible for the Fed to pause rate cuts at two meetings in December or January.