The Federal Reserve is expected to maintain a cautious approach to monetary policy due to persistent inflation in the U.S.

In October, the personal consumption expenditures (PCE) price index, excluding food and energy, is projected to increase by 0.3% from September and by 2.8% year-over-year, which is the largest increase since April.

This data will be important for the Fed's upcoming meeting on December 17-18.

Additionally, household spending is expected to remain strong in the fourth quarter, with consumer spending forecasted to rise by 0.4% and personal income expected to grow by 0.3% for the second consecutive month.

The Fed will not have access to another PCE price gauge before their discussions on potential rate adjustments.