"December 2023 PCE Inflation: Fed's Preferred Gauge Falls Below 3%"

The Commerce Department's personal consumption expenditures price index for December, a key inflation gauge for the Federal Reserve, rose 0.2% on the month and was up 2.9% on a yearly basis, excluding food and energy. This suggests that inflation, while still elevated, is making progress lower, potentially paving the way for the Fed to start cutting interest rates later this year. Consumer spending increased 0.7%, surpassing estimates, while personal income growth edged lower to 0.3%.