Michael McKee
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is up to 3% from 2.8%.
That is something that does not look particularly good if the Fed wants to cut interest rates again.
But again, these are December numbers.
We've got the January CPI.
Next week, we get the January PPI.
Extraordinary early projections have come down, but the final Atlanta Fed GDP Now calculation is the economy expanded at a still very healthy 3% in the fourth quarter, much of that powered by construction of AI data centers around the country.
The data are a month late, delayed by the government shutdown, but they will cheer a White House anxious for some good economic news.
What will really matter to markets, however, will be the December income and spending numbers released for the first time on the same day as GDP.
The GDP calculations fell as the fourth quarter went on, so investors will be very interested in whether consumers cut back during the month.
The Fed, meanwhile, will be looking at the December PCE price indexes.
While consumer price growth slowed last month, PCE is forecast to come in a bit higher for the core.
That and stronger GDP growth would make it harder for the Fed to consider rate cuts anytime soon.
Michael McKee, Bloomberg Radio.
Extraordinary early projections have come down, but the final Atlanta Fed GDP now calculation is the economy expanded at a still very healthy 3% in the fourth quarter.
Much of that powered by construction of AI data centers around the country.
The data are a month late, delayed by the government shutdown, but they will cheer a White House anxious for some good economic news.
What will really matter to markets, however, will be the December income and spending numbers released for the first time on the same day as GDP.
The GDP calculations fell as the fourth quarter went on, so investors will be very interested in whether consumers cut back during the month.
The Fed, meanwhile, will be looking at the December PCE price indexes.
While consumer price growth slowed last month, PCE is forecast to come in a bit higher for the core.