This week’s main release – the US December CPI – aligns with our forecast that core inflation is stabilizing around a 3%ar as we turn into the new year. But the Fed’s target inflation indicator – core PCE – is running close to a 2%ar, fueling optimism about early easing. We continue to see the Fed remaining on hold through March and expect it to signal both progress and patience at the January FOMC meeting.

Speakers:

Bruce Kasman

Joseph Lupton

This podcast was recorded on 12 January 2024.

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