U.S. PCE Price Index Rises 1.6% in December

The video discusses the discrepancy between CPI and core PCE, explaining that the spread is normal due to formula and coverage reasons. It highlights the Fed's cautious approach to inflation, noting that inflation is stable and not rapidly increasing. The video also covers global inflation trends, particularly in Germany and the US, and the implications for Fed policy. Market expectations of inflation are analyzed, with a focus on the Fed's potential response. Finally, the video examines manufacturing data and wage growth, emphasizing their impact on the economy.

What is the current spread between core CPI and core PCE as mentioned in the text?

What factors contribute to the discrepancy in inflation indicators?

How does the text describe the current inflation situation in the United States?

What expectations does the market have regarding inflation according to the text?

What are the implications of rising wages on the economy as discussed in the text?