The November PCE report was out this morning. Headline PCE price index went down -0.1% and core PCE went up 0.1% MoM in November. Core PCE inflation is the 2% target the Fed is trying to optimize for. Core PCE continues to trend down on an annualized basis and is now at 3.2% YoY. It probably will take another month or two for the core PCE to go below 3% but it’s unclear if we will get to 2% in 2024. Overall, this is a very positive PCE report with muted inflation and good growth on personal income and consumer spending. 2023 flies by really fast and it’s almost over. The US economy is surprisingly strong. Next week, I will post my 2024 predictions and the first week of 2024, I will review my predictions for 2023. Happy holidays, everyone!
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