US inflation stays in comfortable range

US inflation rose marginally to 2.7% in November, aligning with consensus and reinforcing expectations for a Federal Reserve rate cut next week, likely lowering rates to 4.25%-4.5%. The increase from 2.6% last month was driven by housing, though data suggests these pressures may be declining. Fed Chair Jay Powell indicated caution on further cuts to balance inflation and unemployment risks. Treasury Secretary Janet Yellen warned Trump's proposed tariffs could disrupt inflation control, as analysts anticipate a slower pace of rate cuts in 2025. Markets reacted positively, with the S&P 500 and Nasdaq gaining, while Treasury yields dipped in anticipation of lower interest rates.