The December 2024 economic projections from the central bank show significant changes from the September figures. They indicate rising inflation and potential impact.

The Personal Consumption Expenditures index climbed 2.4 percent from a year earlier, though the report’s details were more subdued than expected.

An inflation gauge that is closely watched by the Federal Reserve barely rose last month in a sign that price pressures cooled after two months of sharp gains.

More importantly, inflation is also proving stubborn. Some argue that the Fed should be willing to tolerate (even if only implicitly, rather than explicitly) inflation being a bit higher for a bit longer than it theoretically should. Mohamed A. El-Erian over on Bloomberg Opinion explains this “3% inflation target” view here.

Key Takeaways Inflation was unexpectedly cool in November, as measured by Personal Consumption Expenditures (PCE), the measure preferred by Federal Reserve policymakers.The yearly inflation rate ticked to 2.

Americans hoping for lower borrowing costs for homes, credit cards and cars may be disappointed after this week’s Federal Reserve meeting.