Kenny Polcari, chief market strategist at SlateStone Wealth, notes “nervousness” about Trump's expected tax cuts at Varney & Co.
The Fed is the favorite inflation gauge It was lower than expected in November, but remains above the central bank's target level as they continue to fight inflation.
The Commerce Department reported on Friday that the personal consumption expenditures (PCE) index rose 0.1 percent in November and 2.4 percent from a year earlier. Both were lower than FactSet economists' estimates.
Core PCE, which excludes volatile food and energy prices, rose 0.1 percent in the month and rose 2.8 percent from a year earlier, also missing expectations.
US stocks were mixed Following the data in the volatile trading week ahead of the Christmas trading week has been shortened.
| ticker | security | the last | change | change % |
|---|---|---|---|---|
| Me: DJ | Dow Jones Average | 44782 | -128.65 |
-0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 |
+0.24% |
| I: COMP | Nasdaq Composite Index | 19403.947849 | +185.78 |
+0.97% |
Still, headline PCE rose to 2.4 percent from 2.3 percent in October and 2.1 percent in September, suggesting inflation remains sticky.
Why the price of eggs remains very expensive
particle for direct object The Fed is focused on PCE As it tries to reduce the pace of price increases to 2 percent, though policymakers see the headline data as a better indicator of inflation.
Federal Reserve Board Chairman Jerome Powell speaks during a press conference following a meeting of the Federal Open Market Committee at the Federal Reserve on December 18, 2024 in Washington, DC. The Federal Reserve has cut interest rates for the third time. (Alex Wong/Getty Images/Getty Images)
The Federal Reserve cut interest rates by 25 basis points this week, and Fed Chair Jerome Powell reiterated the importance of the incoming data.
The Federal Reserve cut interest rates again in December
We know that too rapid or too restrictive policy cuts can hinder inflation. At the same time, easing policy restrictions too slowly or too little can weaken economic activity and employment. And with respect to the amount and timing of additional adjustments to the target range for the federal funds rate, the committee will assess incoming data, the evolving outlook and the balance of risks, he said at a news conference.
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Consumption, or personal spending, rose 0.4 percent less than estimates but was in line with the previous month. Revenue, however, was 0.4% lower than the previous reading of 0.6%.