Economists question CPI data; 24 AI firms join Genesis Project; NYSE to trade normally during holidays.

Hassett Welcomes CPI Report, Sees Room for Fed Rate Cuts

Positive Economic Outlook

The Director of the National Economic Council, Kevin Hassett, expressed optimism regarding the latest November CPI report, highlighting that the U.S. economy is experiencing high growth alongside declining inflation. He stated, "This is a surprisingly good CPI report," while acknowledging that it does not signify a complete victory over price issues. Hassett noted that wage growth is outpacing price increases, which will lead to significant tax refunds for American taxpayers next year, and emphasized that the Federal Reserve has substantial room to lower interest rates.

Fed Leadership Speculation

Hassett, a leading candidate to succeed Jerome Powell as the next Fed Chair, called for increased transparency from the Federal Reserve. He believes that whoever leads the Fed should lay all cards on the table to clarify the institution's operations.

Economists Skeptical of CPI Data

Concerns Over Data Integrity

Several economists have raised concerns about the accuracy of the CPI data, particularly regarding housing prices, which have remained stable over the past two months. Criticism from economist Sharif pointed out that the official assumption of zero rent and owner-equivalent rent (OER) for October is fundamentally flawed and could artificially lower November's inflation figures. Other economists suggest that the true inflation situation may not be clear until the December data is released in January.

Market Reactions to CPI and Fed Speculation

Stock Market Performance

Following the CPI report, major U.S. indices rose, with the Dow Jones up 0.14%, the Nasdaq gaining 1.38%, and the S&P 500 increasing by 0.79%. Notable tech stocks like Micron Technology surged over 10%, while Tesla and Amazon also saw gains.

Economic Developments

Goldman Sachs predicts that gold prices could rise to $4,900 per ounce by December 2026, driven by geopolitical tensions and central bank demand. Meanwhile, the U.S. government is expected to see significant IPO activity in Hong Kong next year, with estimates of at least 160 new listings.

Other Notable Developments

TikTok's U.S. Operations

TikTok's CEO announced the formation of a new joint venture focused on data security in the U.S., while the company will retain control over e-commerce and advertising.

Nike's Earnings Report

Nike reported a 32% decline in net profit for Q2, leading to a drop in its stock price by over 10%.

TSMC's Production Plans

TSMC is set to begin mass production of its 2nm chips by the end of this year, with significant demand from major clients like Apple and Qualcomm.

Conclusion

The economic landscape is shifting, with the CPI report influencing market expectations and Fed policy discussions. Investors are closely monitoring developments as the year progresses.