PCE inflation near 3% in 2025 signals more work for the Fed
TL;DR
The Fed’s preferred inflation gauge shows prices rose near 3% in 2025, with December PCE up 0.4% and core inflation at 3.0%, signaling persistent inflation and that the Fed still has work to do to bring price gains back toward its 2% goal; tariff-driven price pressures helped lift costs, GDP grew about 2.2% in 2025, and markets slipped on the data.
- Fed’s favorite inflation gauge shows it has more work to do to tame price increases MarketWatch
- The Fed’s Preferred Inflation Gauge Comes In as Expected, at 3% Barron's
- US PCE inflation heats up in December Reuters
- Dollar Rises Slightly as Key Inflation Measure Accelerates The Wall Street Journal
- Friday Could Be a Big Day for Markets The Motley Fool
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