The U.S. rate of inflation has continued to come down, with the price index for Personal Consumption Expenditures (PCE), which is the preferred inflation rate as well as the target rate of inflation used by the Federal Reserve (Fed) to conduct monetary policy, hit 2.6% on a year earlier basis in December of 2023, down from a 40-year high of 5.5% in March of 2022. The Fed has established a target for the PCE price index of 2% over the longer run so although the PCE price index has had a 2-handle for the last several months, the Fed is still, by paraphrasing Chairman Jerome Powell, “not convinced” that the rate of ... (full story)