Kenny Polcari, chief market strategist at Slatestone Wealth, addressed the ‘jitters’ over Trump’s expected tax cuts at Varney & Co.
pro-federal reserve inflation gauge It came in lower than expected in November, but still remains above the central bank’s target level as they continue efforts to reduce inflation.
The Commerce Department reported on Friday that the personal consumption expenditure (PCE) index rose 0.1% in November and 2.4% on a year-on-year basis. Both FactSets came in below economists’ estimates.
Core PCE, which excludes volatile food and energy prices, rose 0.1% for the month and was 2.8% from a year earlier, also less than expected.
US stocks remained mixed The data follows a volatile week of trading ahead of the shortened Christmas trading week.
| anchor | Security | Last | Change | Change % |
|---|---|---|---|---|
| Me:DJI | 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% |
Nevertheless, the headline PCE of 2.4% increased from 2.3% in October and 2.1% in September, suggesting that inflation remains stable.
Why are egg prices so expensive?
Federal Reserve is focusing on PCE The headline figure, as it attempts to slow the pace of price growth to 2%, although policymakers view the headline data as a better indicator of inflation.
Federal Reserve Chairman Jerome Powell speaks during a press conference after the Federal Open Market Committee meeting at the Federal Reserve in Washington, DC, on Wednesday. (Alex Wong/Getty Images/Getty Images)
The Fed cut rates by 25 basis points this week, and Federal Reserve Chairman Jerome Powell reiterated the importance of the incoming data.
Fed cuts rates again in December
“We know that reducing policy restraint too quickly or too much could hinder progress on inflation. At the same time, reducing policy restraint too slowly or too little could unnecessarily weaken economic activity and employment Considering the extent and timing of additional adjustments to the federal funds rate, the Committee will assess the incoming data, the emerging outlook, and the balance of risks. ”
Get Fox Business by clicking here
Personal consumption, or spending, rose 0.4% less than expected, but was on par with the previous month. However, earnings were down 0.4% from the previous estimate of 0.6%.
