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The Fed
The November 2024 Personal Consumption Expenditures (PCE) price index rose by 0.1% month-over-month, bringing the year-over-year increase to 2.4%. Core PCE, which excludes volatile food and energy prices, also grew by 0.1% MoM and 2.8% YoY.
The Federal Reserve announced a 25 basis point rate cut at its December 2024 FOMC meeting, lowering the federal funds target range to 4.25%—4.50%.
The Consumer Price Index (CPI) for November 2024 rose by 0.3% month-over-month and 2.7% for the twelve months ended in November. Core CPI, which excludes volatile food and energy prices, increased by 0.2% MoM and 3.3% for the same 12-month period.
US ECONOMY
The Consumer Price Index (CPI) for November 2024 rose by 0.3% month-over-month and 2.7% for the twelve months ended in November. Core CPI, which excludes volatile food and energy prices, increased by 0.2% MoM and 3.3% for the same 12-month period.
The November 2024 Jobs Report showed that the U.S. economy added 227,000 nonfarm payroll jobs, surpassing market expectations of 200,000 (Trading Economics).
During a speech this week, Fed Governor Christopher Waller expressed his belief that monetary policy remains restrictive and that rate cuts should continue over the next year.
US Politics
On Monday, President-Elect Trump stated on Truth Social that on January 20th, he will begin the necessary process to impose 25% tariffs on all Mexican and Canadian imports into the US. Furthermore, he would implement an additional 10% tariff on China.
Former President Donald Trump secured a second term in office, returning after losing his reelection campaign in 2020. This is the president's first return to office after losing reelection since Grover Cleveland achieved that feat in 1892.