Fed's Goolsbee: December services inflation was a little more favorable than expected

<ul><li>2023 was a 'hall of fame' year on inflation reduction</li><li>Overall CPI inflation in Dec was pretty close to what was expected</li><li>Housing inflation was a little less favorable than expected</li><li>Persistently high shelter inflation CPI may have less implication for Fed's personal consumption expenditures target</li><li>Inflation will be the primary determinant of when and how much interest rates should be cut</li><li>The Fed still has weeks and months of data to come</li><li>Can't answer the question of what we'll do at March meeting without data</li><li>Fed so far is on golden path, though it could be derailed</li><li>Unlike a year ago, the risks to golden path are on both sides</li><li>Risks include persistent housing inflation, potential supply shocks</li></ul><p>If you would have given me the CPI numbers and today's schedule of speakers, I probably would have expected something more hawkish. But all three of them have been dismissive of the higher inflation.</p>

This article was written by Adam Button at www.forexlive.com.