SPTS - Time For The Fed To Ease Up
2024-01-29 17:15:00 ET
Summary
- Both headline and core inflation (excluding food and energy prices) were 0.2 percent in December. Year-over-year, the figures were 2.6 percent and 2.9 percent, respectively.
- Stronger growth and falling inflation should signal to the Fed it’s time to consider easing monetary policy.
- Nominal GDP, the cleanest measure of aggregate demand we have, is very close to its pre-pandemic growth path of 5 percent per year.
By Alexander William Salter
After a scare with January’s Consumer Price Index ((CPI)) release, economists and market watchers are breathing a sigh of relief following the latest Personal Consumption Expenditures Price Index ((PCEPI)) data. Both headline and core inflation (excluding food and energy prices) were 0.2 percent in December. Year-over-year, the figures were 2.6 percent and 2.9 percent, respectively. The overall impression is one of significant disinflationary trends....
Time For The Fed To Ease Up