MARKET DAILY

Market 12/22: PCE continues downward trend, reinforcing confidence in Fed pivot

Wage growth reaches record high despite core PCE growth slowing. US durable goods orders surge most in over 3 years.

Fed's preferred inflation gauge (PCE growth) is on track to decline as Fed expected:

Headline PCE growth reaches +2.6% Y/Y in November, down from +2.9% previous and below expectations (2.8% Y/Y).

Core PCE growth (Core PCE) - down to +3.2% YoY - lower than forecast (+3.3%) and the lowest since April 2021.

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