Fed Data Shows Inflation Cooling While Spending Holds Steady, Stoking Rate Cut Debate
• Treasury yields rose while stocks were mixed as traders evaluated data on US spending and inflation for clues on the Fed's next moves
• The Fed's preferred inflation gauge cooled to an almost 3-year low despite strong holiday spending, keeping alive the debate over when officials may cut rates
• Wall Street is divided over whether the data supports rate cuts soon or the Fed being patient for more evidence that inflation is declining
• Bitcoin rose past $41,000 as outflows from the Grayscale Bitcoin Trust slowed, potentially stemming its recent slump
• Corporate earnings were mixed with Visa and AmEx beating estimates but T-Mobile missing as it added more subscribers than expected