Staff Review of the Economic Situation
The information reviewed for the October 31–
November 1 meeting indicated that labor market conditions
generally continued to strengthen and that real
gross domestic product (GDP) expanded at a solid pace
in the third quarter despite hurricane-related disruptions.
Although the effects of the recent hurricanes led to a reported
decline in payroll employment in September, the
unemployment rate decreased further. Retail gasoline
prices jumped in the aftermath of the hurricanes, but total
consumer price inflation, as measured by the
12-month percentage change in the price index for personal
consumption expenditures (PCE), remained below
2 percent in September and was lower than early in the
year. Survey-based measures of longer-run inflation expectations
were little changed on balance.