The Federal Reserve's key inflation rate is still elevated but kept up its two-month streak of good readings. S&P 500 futures rose.
Corporate bond issuance is rising, with issuance increasing around 30% in 2024 compared to 2023. Read more here.
US Federal Reserve Chairman Jerome Powell speaks at a press conference after the Monetary Policy Committee meeting in Washington, DC, on December 18, 2024.
December’s PCE report on Friday suggests that inflation finished 2024 above the Federal Reserve's 2% target, but it didn't spiral out of control, which is "the ideal outcome" from a stock investor’s perspective,
One of the most consequential takeaways from the latest PCE report showed that core inflation, which excludes volatile food and energy prices, was stable in December. An earlier reading from the CPI had showed a modest retreat in the year-over-year core rate.
An inflation gauge closely watched by the Federal Reserve rose slightly last month, the latest sign that some consumer prices remain stubbornly elevated, even as inflation is cooling in fits and starts.
The central bank needs to see further progress on inflation or weakness in the labor market to resume interest rate cuts.
Gold prices rose to hit a lifetime high on Thursday, sparked by safe-haven demand due to U.S. tariff threats, while the focus was also on a crucial inflation report for clues on the Federal Reserve's policy path.
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He cited inflation running above the Fed's 2% target, the expanding economy and a "solid" U.S. labor market. Before cutting rates again, the central bank may need to see "a couple months of some tangibly softer employment data," potentially in areas such as wage growth, said Rieder.
Investors are widely expecting the Fed to hold its benchmark interest rate at the current level again, extending a pause in its rate-cutting cycle as markets keep a watchful eye out for whether inflationary pressures risk building under the new White House administration.
At the Federal Reserve’s first meeting in 2025, consumers are going to want what Fed Chair Jerome Powell simply can’t give them: An answer to how much longer interest rates are going to stay high.