The Fed’s preferred measure of inflation came in lower than expected

Preferred by the Federal Reserve Inflation measure The inflation rate came in lower than expected in November, but is still above the central bank’s target level as it continues its efforts to reduce inflation.

The Commerce Department reported Friday that the personal consumption expenditures index rose 0.1% in November and 2.4% year over year. Both came in below FactSet economists’ estimates.

The core PCE index, which excludes volatile food and energy prices, rose 0.1% during the month, up 2.8% from a year ago, also below expectations.

US stocks were mixed Follow the data in a volatile trading week ahead of the Christmas shortened trading week.

tape	protection	last	It changes	% changes
Me: DJI	Dow Jones averages	44782	-128.65	-0.29%
SP500	Standard & Poor’s 500	6047.15	+14.77	+0.24%
Me: comp	Nasdaq Composite Index	19403.947849	+185.78	+0.97%

However, the headline PCE index rose 2.4% from 2.3% in October and 2.1% in September, indicating that inflation remains steady.

Why are egg prices so expensive?

the The Federal Reserve focuses on personal consumption expenditures The headline figure as it attempts to slow the pace of price increases to 2%, although policymakers view fundamental data as a better indicator of inflation.

The Federal Reserve cut interest rates by 25 basis points this week, and Federal Reserve Chairman Jerome Powell emphasized the importance of the incoming data.

The Fed cuts interest rates again in December

“We know that reducing policy restrictions too quickly or too much can impede progress on inflation. At the same time, reducing policy restrictions too slowly or too little can unjustifiably dampen economic activity and employment. Given The extent and timing of additional adjustments to monetary policy. He said during his press conference: “The target range for the federal funds rate. The committee will evaluate the incoming data, evolving expectations and the balance of risks. “We are not on any pre-determined path in our summary of economic forecasts.”

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Personal consumption, or spending, rose 0.4% below estimates but identical to the previous month. However, income came in at 0.4% lower than the previous reading of 0.6%.