U.S. stocks rose on Friday after a tame inflation report reinforced expectations that the Federal Reserve will cut interest rates at its final meeting of the year next week.

Bank of America shared its inflation forecast with TheStreet, based on the core (excluding volatile food and energy) Personal Consumption Expenditures ( PCE) index. Directionally, PCE and CPI tend to move together, suggesting we’ll similarly see a flattening of inflation pressures as we get deeper into next year.

Follow for live news and analysis of the Fed's preferred inflation gauge, the personal consumption expenditures price index. The September reading is due to be released on Friday morning.

Stocks are back on the doorstep of record territory after a volatile month on Wall Street, but persistent inflation worries and souring consumer sentiment are keeping investors uneasy ahead of the Fed’s last policy meeting of the year.

Core inflation, a price measure closely watched by the Federal Reserve, came in cooler than expected in September, according to delayed federal data, a win for Republican President Donald Trump, who wants the central bank to cut interest rates more quickly and is under pressure from Democrats over affordability.

Americans seemed a tad more cheery about the economy this month, while a delayed inflation report came in better than expected.

A key measure the Federal Reserve uses to gauge inflation shows that prices were up 2.8% in September, compared to a year ago.

Fed officials should be able to focus on the wavering labor market and cut interest rates by another quarter percentage point at their final meeting of the year next week, thanks to relatively stable inflation data.

Inflation risks in the euro area are slightly tilted to the downside in the medium term, European Central Bank Governing Council member Olli Rehn said in an interview with Milano Finanza.

Venezuelans are shrugging off threats to oust leader Nicolás Maduro, worrying more about the price of Christmas decorations and an economy in ruins.

The latest inflation data release, September's Personal Consumption Expenditures (PCE) data, showed prices rose in line with expectations. This report will be the US federal government's final data release before the Federal Reserve's last FOMC meeting of the year,