Asset prices, meanwhile, have shrugged off all indication that the Fed’s inflation battle is moving in the wrong direction. Stocks continue to hover at record highs, bond markets remain relatively unbothered, and bitcoin is still knocking on $100,000.

Fed officials had been hoping this fall for a clean downtrend in inflation, allowing them to focus more fully on preventing an economic downturn. The data hasn't cooperated. Over the 12 months through October,

The Federal Reserve’s preferred inflation measure remained above the central bank’s 2% target pace in the year through October, as progress on slowing price growth appears to have stalled in late 2024.