Slowing US consumer spending signals labor market slowdown

US consumer spending rose moderately in October, with a 0.2% increase, while inflation showed signs of cooling, with the smallest year-on-year gain in over two years. The labor market also showed signs of gradual slowing, as more Americans applied for unemployment benefits and the number of people on jobless rolls surged to a two-year high. These developments have bolstered expectations that the Federal Reserve's interest rate hiking campaign may be over, with policymakers suggesting that rate hikes are likely over but pushing back on expectations of quick rate cuts.