Posted 1/20/2024, 12:31:00 PM
Inflation Slowing but Still Too High; GDP Growth Resilient Though Cooling
- Inflation is slowing but still too high for the Fed and public; the goal is to get it back down to 2%
- The PCE price index is the Fed's preferred measure of inflation; the core PCE is expected to rise 0.2% in December
- GDP growth likely slowed in Q4 but remains resilient at an estimated 1.7% pace
- Consumer spending has shown remarkable strength despite high inflation and rates
- The manufacturing sector and government spending have shown some weakness recently