(AURN News) – Inflation continues to cast a long shadow over the United States economy, with fresh data revealing a concerning trend despite efforts by the Federal Reserve to rein it in. According to estimates released by the Bureau of Economic Analysis, the struggle to bring inflation under control persists, as personal incomes experienced a slight uptick in December, paralleled by an unwelcome rise in inflation.
The Fed closely monitors Personal Consumption Expenditures (PCE) data as a key indicator in its battle against inflation. The latest report suggests progress, albeit modest, in lowering inflation rates toward the central bank’s targeted goal of 2 percent. For the month of December, the PCE price index saw a 0.2% increase, reflecting a rise in the prices of goods, services, and food. As we await the release of January’s data on February 29th, the focus will turn to the Fed’s next move in trying to bring inflation under control.
The Fed is set to convene for its two-day meeting next week, which will play a pivotal role in determining the course of monetary policy. All eyes will be on Fed Chair Jerome Powell as he addresses the nation with insights into whether interest rates will see an increase, decrease, or remain unchanged in response to persistent inflationary pressures.
The December PCE data highlights the challenges faced by the Federal Reserve in taming inflation, a task that has become increasingly complex amid global economic uncertainties ranging from the U.S. and China relationship, the Israel-Hamas War, as well as the war between Russia and Ukraine.
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