The The Commerce Department’s personal consumption expenditures (PCE) index, the Fed’s preferred inflation gauge, showed a 0.1% rise last month, after a similar increase in November. US consumer spending also fell, putting the economy on a lower growth path heading into 2023.
inflation of USA begins to slow down and reached 5% annual to December, below the 5.5% that it had reached in the twelve months to November, according to the PCE index published on Friday by the North country’s Department of Commerce. This is the index that the Federal Reserve (FED) prefers to define its rate policy.
Since both inflation and the economy are slowing, traders have stood firm in their bets that the Fed will raise interest rates just one more time apart from the quarter point rise that is widely expected over the next week, before stalling out.
“That data is certainly going to be enough to justify the Fed cutting the rate hike to 25 basis points when it makes its decision on February 1,” he said. Art Hoganfrom B Riley Wealth to Reuters.
Wall Street is about to close the week uphelped by renewed appetite for growth stocks and bullish prospects for Tesla, which shot up 11%although the Market sentiment was dampened by the cautious tone of companieswhich have signaled a difficult macroeconomic environment.
American Express Co advanced 10.5% after raising its 2023 profit forecast above Wall Street expectations, while its rival in the credit card market Visa Inc added 3% thanks to upbeat quarterly results.
Source: Ambito
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