In November, prices remained stable but still exceeded the Federal Reserve’s target compared to a year ago, with the personal consumption expenditures price index showing a 0.1% increase from October and a 2.4% inflation rate annually. Core PCE also rose 0.1% monthly and 2.8% from a year ago, below expectations. Fed officials view core inflation as a better indicator, with goods prices falling 0.4% and services rising 3.8% over 12 months, while housing inflation increased by 0.2%. Personal income and spending figures were slightly below forecasts, with personal saving rate at 4.4%. Following the release, stock market futures and Treasury yields declined, with investors reacting to the Fed’s recent interest rate cut and revised projections for future cuts based on inflation expectations.
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Keir Starmer’s realignment with Europe will be a low-key one
No 10 aims to "Make Brussels Boring Again" by avoiding terms like ‘single market’ and ‘freedom of movement.’ Labour MPs are urging Starmer to support a youth mobility scheme amid a reset in EU trade relations. The mention of complex trade topics such as veterinary agreements and “Canada-plus” has become uninteresting to many, reflecting a shift in focus that No 10 hopes will continue, moving away from the intense scrutiny of past debates. Full Article
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