Everyday Economics: Labor market for rate cuts?

(The Center Square) – This week is light on major economic releases and heavy on Federal Reserve speeches. That shifts the spotlight to the question markets actually care about right now: Has the labor market cooled enough to justify additional rate cuts, even though inflation – and inflation expectations – remain closer to 3% than 2%? The latest inflation data argues for caution. At the same time, trade policy is back in the headlines: after the Supreme Court struck down the administration’s prior tariff program, the President responded by reinstating a temporary 10% global tariff (under Section 122 authority), adding a fresh dose of uncertainty to the inflation outlook and the growth path. Inflation moved the wrong way at year-end The Fed’s preferred inflation gauge firmed in December: Headline PCE inflation rose to 2.9% year over year in December, up from 2.82% in November. Prices rose 0.4% month over month in December, up from 0.2% in November. Core PCE (excluding food and energy)