Tag #Eci

What is the significance of the core PCE price index remaining above the Federal Reserve's 2% target in December 2024, despite the recent interest rate cuts?

In December 2024, the core Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, remained at 2.8%, exceeding the Fed's 2% target. This follows three consecutive interest rate cuts by the Fed in the same month, highlighting a continued inflation challenge despite the rate adjustments. Personal income rose by 0.4%, and consumer spending increased by 0.7%.