Hi, Peter Navarre here with this week's market and economy wrap for the week ending December 22nd,

2023.

Before we get started, let me wish all of you a Merry Christmas and Happy Holiday as we move into what may well

turn out to be in one of the most tumultuous years politically and perhaps economically

in American history.

We as Americans all deserve better than what we are getting now

from both the White House and U.S. Congress,

not to mention our weaponized Department of Justice and FBI.

At least in a democracy, we will have the opportunity

to throw these rascals out this year and I urge everybody out there reading

this or listening to this to get involved. Okay let's get down to the nitty and gritty of what happened this week in the economy and markets. The S&P 500 continued its hot streak with a modest gain, except for an absolutely weird options expiration day on Wednesday,

which led to a massive one-day pullback,

the week offered few other surprises.

On the economic indicator front, the Federal Reserve's favorite inflation indicator,

the PCE index, fell for the first time since 2020 2020 had provided further evidence that inflation and

price pressures are about to cool.

On an annualized basis, the core rate decelerated from 3.4 to 3.2 percent and this month's inflation reduction came in right at

expectations so the market underwent little change on Friday's news.

The Wall Street betting money now continues to be on a

reduction in interest rates. But after getting out on their skis last week and

talking about such possible rate reductions, a gaggle of Fed reserve officials

tried to walk back the whole thing.

...