Federal Reserve's Inflation Gauge Reinforces Rate-Cut Tilt as Stocks Continue Rising

Despite economic growth and low unemployment, public sentiment remains gloomy due to inflation and concerns for younger generations.

The Federal Reserve's preferred gauge of underlying inflation barely rose in November, reinforcing the central bank's pivot toward interest-rate cuts next year.
Stocks are on pace for an eighth consecutive week higher, something they haven't done since 2017.
The U.S. economy performed better than expected in 2023, with real GDP expanding by 2.6 percent, unemployment remaining low at 3.8 percent and inflation slowing to 2.8 percent.
Despite the positive economic indicators, public opinion polls indicate the majority of Americans believe the economy is in trouble, primarily due to inflation and concerns about the standard of living for younger generations.
Investors are upbeat due to the U.S. economy outperforming most others, the rapid expansion of the digital economy in America, and the global leadership of U.S. multinational corporations.