"US Core PCE Gauge Shows Mild 0.2% Rise in December"

The Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, has fallen below 3% for the first time since March 2021, with the "core" PCE, excluding food and energy, growing 2.9% year-over-year in December. This is below economists' expectations and indicates a potential disinflationary trend, fueling expectations of a rate cut by the Federal Reserve after two years of hikes. Despite positive economic indicators, including higher-than-expected fourth quarter economic growth and resilient consumer spending, the inflation data suggests room for the Fed to start cutting interest rates soon.