Page 2 - Core Pce News Today

The US economy continues to do well. Jerome Powell wants investors to think that's a good thing.

There was little for markets to dislike in the impressive sweep of U.S. economic and corporate healthchecks on Thursday - unless of course you're wary of higher oil prices or hold Tesla shares. The icing on the cake later today would be confirmation in December's PCE inflation update that the Federal Reserve is effectively hitting its target already as it prepares to meet next week for the first time in 2024.

"Monetary policy now is as tight as it has ever been on the precipice of a recession."

Investors have become used to being underwhelmed by activity as Beijing drip feeds its stimulus

U.S. prices fell in November for the first in more than 3-1/2 years, pushing the annual increase in inflation further below 3%, and boosting financial market expectations of an interest rate cut from the Federal Reserve next March. The report from the Commerce Department on Friday also showed underlying inflation pressures continuing to subside. Cooling inflation left more income at the disposal of households, helping to underpin consumer spending and the overall economy as the year winds down.

"Core" PCE, which excludes the volatile food and energy categories, grew 3.7% in September from the year-earlier period, down from a revised 3.8% in August

The CPI is a false signal. Adjusting it by comparison with other, superior measures, shows that it overstates inflation by 1-2%. Weve already reached the Feds 2% target

The latest figures show that inflation has been "tamed." In fact, they signal that deflation may be looming. Hard to tell – because the std economic models are broken.

The Federal Reserve's preferred inflation metric grew at its slowest monthly pace since late 2020 and has investors increasingly betting there won't be another interest rate hike this year.

The S&P 500 ended September 5% lower, notching its second-straight losing month. For the third quarter, it lost about 4%.