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US Inflation Promptly Undershoots After Fed Raises Forecast
In a fortuitous -- if ironic -- development for a panel of technocrats who just marked up their core inflation forecasts aggressively, the Fed's preferred measure of underlying price growth undershot estimates in data released Friday.
The MoM core PCE print, at just 0.115% unrounded, was the coolest since May. Economists collectively expected a 0.2% advance on the all-important readout.
The 12-month pace was 2.8%, a tenth lower than expected, and flat from the prior month's annual rate.
Hea
The Fed doesn’t have PTSD from Trump berating them to cut rates constantly?
Have to love the irony.
A street comment: “The Fed does not have a sticky inflation problem, and the marking up of the inflation profile for 2025 that motivated the December two cut baseline instead reflects the Fed pre-positioning for Trump shocks.”