Federal Reserve Has Another Reason to Take It Slow

Overall inflation in the US is now 2.1%, the lowest since early 2021 and just above the central bank’s 2% goal. The Federal Reserve’s preferred measure, however, posted its biggest monthly gain since April, bolstering the case for a slower pace of interest-rate cuts following last month’s big reduction. The so-called core personal consumption expenditures price index, which strips out volatile food and energy items, increased 0.3% in September. On the jobs front, applications for unemployment benefits fell last week to their lowest since May. Initial claims decreased by 12,000 to 216,000 in the week ended Oct. 26. The median forecast in a Bloomberg survey of economists called for 230,000 applications. Continuing claims, a proxy for the number of people receiving benefits, fell to 1.86 million in the previous week, according to Labor Department data released Thursday.

A year ago, Citigroup Chief Executive Officer Jane Fraser unveiled a plan to simplify the sprawling global bank—a plan that involved terminating 20,000 jobs. Now, a group of former Citigroup bankers is urging the firm’s board to cancel bonuses for hundreds of managers, slash spending on consultants and take other steps to accelerate the company’s turnaround. The group is demanding the panel claw back and halt millions of dollars in bonuses raked in by bosses across Citigroup for their work implementing Fraser’s plan.