The Fed is in a holding pattern, awaiting more data, with December showing strong consumption but moderate inflation, suggesting disinflationary trends.
The tariffs if sustained could cause inflation to significantly worsen, possibly eroding voters' trust that Trump could as promised lower the prices of groceries, gasoline, housing, autos and other ...
The Bureau of Economic Analysis said Friday that personal consumption expenditures rose 2.6% in December, in line with expectations. Core PCE, omitting food and energy, was 2.8%.
The Consumer Price Index report for January is expected to show broadly unchanged annual inflation according to nowcasts. That may be broadly good news for the Fed.
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