US Fed’s favored inflation gauge rises before rate decision

Breitbart ^ | 01/26/2024 | AP

[ChicagoConservative27]

The US Federal Reserve’s favored measure of inflation ticked higher last month, according to government data published Friday, indicating that its long-running battle against rising prices is not over yet.

The latest announcement will likely ensure the US central bank keeps interest rates on hold at its next decision announcement on Wednesday, as policymakers continue talks on when to start cuts. The personal consumption expenditures (PCE) price index rose at an annual rate of 2.6 percent last month, unchanged from November, the Department of Commerce said in a statement.

On a monthly level, headline PCE inflation rose by 0.2 percent in December, up from a 0.1 percent decline a month earlier. This was in line with market expectations, according to Briefing.com.

[ChicagoConservative27]

But the economy is roaring! (S)

[Red Badger]

How could it not?

They are adding the equivalent of a new city the size of Pittsburg every month.........................

[ProtectOurFreedom]

Want to know the difference between the Consumer Price Index (which we've used for years) and the Personal Consumption Expenditures Price Index? Simple. Turn to your Government for the answer at A Reconciliation between the CPI and the PCE Price Index. Here you will nearn that this explanation is dated September 2007.

Has anything happened in the past 16.3 years? Nah.

[Owen]

Govt spending is and always has been in the GDP equation.

Interest on the debt is part of gov’t spending.

As interest increases, we get an increase in GDP. So the economy is doing what the numbers say. The deficit will be $1.8T FY 2024. That is added to GDP.

You can avoid recessions with deficits and with interest on the debt, because of the definitions of things, particularly GDP.

[frogjerk]