Powell's comments on the framework review (i.e. FED'S REVIEW WILL NOT INCLUDE A FOCUS ON THE INFLATION TARGET) could cause some confusion regarding the Fed's data-watching priorities. This does NOT mean the Fed is tuning out from inflation data. (1/2)

It's always cute when congress blames the Fed for inflation when zero rates and massive QE didn't cause inflation for nearly a decade. (1/2)

So here are the key changes in the statement. More upbeat on the employment mandate, less upbeat on inflation (notice the "has made progress" was dropped).

Both of these signify less easing.

Headline CPI inflation comes in at 0.4% MM, 2.9% YY, in line with expectations. Core was 0.2% MM (0.23% to be precise) and 3.3% YY, a tick below expectations on both.

Most of the miss of core against target remains housing and auto insurance.

Scott Bessent's confirmation hearing tomorrow will probably be more important for the bond market than retail sales. No doubt some talk about his favored issuance strategy

2/ Noise aside, though, initial claims have been slightly above year-ago levels since late summer, consistent with a very small increase in layoffs.

Claims:

1/ Last week's weird initial claims jump reversed in the 2nd week of December.

FHFA's Expanded Quarter Home Price Index updated for Q3.

Q3 2024 = 409.43
Q3 2023 = 389.15

According to FHFA's methodology here: fhfa.gov/sites/defaul... this equates to a new conforming loan limit of 806,500 (806,497 before rounding).
Disclaimer: Math is challenging sometimes