The Fed's favorite (until it starts rising) inflation indicator - Core PCE - printed cooler than expected for November (+0.1% MoM vs +0.2% MoM exp) which held it steady at +2.8% YoY (below the expected 2.9%) - tied for the highest since April...

However, Headline PCE rose to +2.4% from +2.3% - its highest since July...

Durable (and non-durable) Goods Deflation has all but evaporated now...

The so-called SuperCore - Core Services Ex-Shelter PCE - rose 0.16% MoM leaving the index up 3.51% YoY (steady at its highest since April)...

Finally, both the cyclical and acyclical components of inflation are on the rise once again (the latter being out of the control of The Fed implicitly)...

Not a good sign and perhaps The SF Fed's report is what prompted Powell's pivot to the hawkish dark-side. Or is this what he realy fears?

Of course, we all know who will get the blame if that replay occurs!

...data-dependent Powell was right?
{ai:summary}The Core PCE inflation indicator rose only 0.1% month-over-month in November, remaining steady at 2.8% year-over-year, which is below expectations. However, the Headline PCE increased to 2.4%, its highest since July, signaling rising inflation pressures. The SuperCore index also saw a rise, indicating that both cyclical and acyclical inflation components are increasing, which could influence the Federal Reserve's policy direction. Concerns are growing about the implications of these trends for future economic stability. #economy

Fed's Favorite Inflation Indicator Holds At 7-Month High

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