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The Federal Reserve’s preferred inflation measure softened to a near-three-year low in December, but personal spending continued to rise, helping further ratify expectations for a soft landing in the US economy – while slightly complicating the outlook for rate cuts. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.2 percent in December from the prior month, bringing the three-month annualized pace down to 1.5 percent, well within the central bank’s target range. On a year over year basis, core price growth slowed to 2.9 percent from 3.2 percent prior, and...

The American economy expanded far more than expected in the fourth quarter, smashing market forecasts and delivering booming growth even as the lagging impact of one of history’s most aggressive tightening cycles hit home. Data released by the Bureau of Economic Analysis this morning showed the economy expanding 3.3 percent in the October-through-December period, topping market consensus that had been set closer to 2 percent, and exceeding estimates provided by the Atlanta Federal Reserve’s nowcasting model. On a full-year basis, output rose 2.3 percent, defying longstanding expectations for a slowdown and even a recession. Personal consumption rose 2.8 percent, slowing...