Fed's Preferred Inflation Gauge Comes In At 3% as Expected
Affected assets and topics
Why it matters
The Federal Reserve's preferred inflation gauge, core PCE, rose 3% year-over-year in December, matching expectations, but indicating that reining in inflation may be more challenging than anticipated.
Article tone
Expected market reaction
Market impact analysis based on bearish sentiment with 80% confidence.
Evidence trail
Evidence
AI provenance
Technical identifiers
- Provider tag
- groq-llama-3.1-8b-instant
- Analysis version
- groq-llama-3.1-8b-instant
- Article id
- 48406
Original source
US inflation was higher in December, with core PCE rising 0.4% month-over-month and 3% year-over-year. The Federal Reserve's preferred inflation gauge suggesting that reining in higher prices is proving to be more difficult than anticipated for the FOMC. Policymakers at their January meeting said they'd like clearer evidence that inflation is returning to their 2% goal, but Friday's December data suggests they will have to maintain a "wait-and-see" approach. Olu Sonola, Head of US Economic Research at Fitch Ratings, joins Bloomberg Businessweek Daily to discuss. He also weighs in on GDP and the potential economic impact of President Trump's tariffs being struck down by the Supreme Court. Sonola speaks with Carol Massar and Emily Graffeo. (Source: Bloomberg)
Read the full article on Bloomberg
Original article published by Bloomberg on February 21, 2026. Analysis and insights provided by AnalystMarkets AI.