Despite it being the week of Christmas, there is no shortage of economic data releases. The leading economic indicators index will be worth following to get an indication of economic strength heading into the rate hiking cycle. I will also have a close eye on the consumer confidence index and the University of Michigan consumer sentiment index. However, the headline release will the Federal Reserve’s (Fed) preferred measure of inflation, the personal consumption expenditures index (PCE). The Fed has acknowledged that high inflation will be stickier than originally thought by removing the word “transitory” from their December FOMC meeting announcement and will place a bigger emphasis on taming inflation. Inflation is the primary concern for investors and consumers, so it will be worth watching to see if the Fed can indeed tame it.
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