Federal Reserve Policy

The Fed’s preferred PCE gauge re‑accelerated in December, with headline PCE rising 0.4% month‑over‑month and hitting 2.9% year‑over‑year (up from 2.8%), while core PCE climbed 0.4% m/m and 3.0% y/y as consumer spending increased 0.4%. The report — delayed about six weeks by last fall’s government shutdown — arrives as Fed minutes show a widening divide among policymakers over the timing of rate cuts, complicating the policy outlook.