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US consumer spending, inflation, and the labor market all cooled in recent weeks, adding to evidence that the economy is slowing. Inflation-adjusted personal spending rose 0.2% last month after a downwardly revised 0.3% advance in September. Separate data showed recurring applications for unemployment benefits at the highest in about two years. The figures are consistent with expectations that the economy will moderate in the fourth quarter following the strongest growth in nearly two years. Cooler demand can help reassure the Fed that inflationary pressures will continue to abate, reinforcing expectations central bankers are done raising interest rates.
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