Weekly Economic Update: December 26, 2023
• Yields fell over the week with the two-year Treasury note falling by nine basis points to 4.34% while the five-year note decreased by five basis points to 3.87%.
• The disinflationary trend continued as shown by the core PCE, the Fed’s preferred gauge, which advanced by a tepid 0.1% in November and over the last six months is running at an annual rate of less than 2.0%.
• The consumer bounced back in November following modest spending in October as real consumption advanced by a robust 0.3% and did so with firm footing as real disposable income advanced by a buoyant 0.4%.
• The Fed will not meet again until the end of January but ends the year on a positive note with inflation coming down while consumption and labor markets remain upright setting the stage for the highly coveted, yet elusive soft landing.