U.S. Consumer Spending Declines in December as Core Prices Rise

The transcript discusses economic indicators such as spending, income, and inflation, highlighting a steady but slow economic environment. It examines market reactions to Federal Reserve policies, suggesting low interest rates may persist. The discussion includes potential inflation targets and the likelihood of rate cuts, emphasizing the market's unpreparedness for inflation risks and the need for wage growth.

What does the core deflator indicate about inflation trends?

How does the current personal income trend affect consumer spending?

What implications does the Fed's stance on interest rates have for the market?

What factors contribute to the Fed's decision-making regarding rate hikes?

In what ways might inflation expectations differ from actual inflation data?