But one key measure of inflation, the Personal Consumption Expenditures Price Index excluding food and energy, was at 2.8% in November and has been stuck in the 2.6%-2.8% range since May.
The bond market has been screaming at the Fed that the inflation is not done. The economy is fine. There are plenty of jobs. The market is not hurting for liquidity.
In December, the Fed boosted its inflation outlook for 2025 from a 2.1 percent annual increase to a 2.5 percent annual increase, as measured in the personal consumption expenditures price index.