PCE Report this Week Could Signal Cooling Inflation, More Dovish Fed in 2024
• Fears of a stock market crash ahead of Friday's Personal Consumption Expenditures (PCE) report, the Fed's favored inflation gauge • PCE expected to show first sub-3% inflation reading in years, potentially cementing Fed's recent dovish tone • Consumer Price Index (CPI) in November rose just 0.1% monthly, 3.1% annually, indicating inflation may be cooling • However, core inflation remains sticky at 4% annually in November, above Fed 2% target • PCE report on December 22nd will set tone for inflation/interest rates in 2024