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Fed's preferred inflation gauge posts largest monthly gain since April as tariff fears boost spending

1. US inflation rose 0.3%, largest gain in eight months. 2. Consumer spending increased by 0.7%, supporting economic growth. 3. Labor costs gained 0.9%, impacting inflation outlook. 4. Fed forecasts only two rate cuts amid economic uncertainties. 5. Core inflation rose 2.8%, matching November's increase.

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FAQ

Why Bearish?

Rising inflation may delay rate cuts, influencing S&P 500's performance negatively, similar to past inflation spikes affecting market sentiment.

How important is it?

The article discusses critical economic indicators that directly affect market sentiment and Fed policy, significantly influencing the S&P 500.

Why Short Term?

Market reacts quickly to inflation news, but longer-term effects depend on economic stabilization and Fed actions.

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