Real retail sales kept growing at a good pace in Q4, while the available data on Durable Goods (October and November) suggests a slight slowdown but still a healthy pace. No wonder y/y growth in GDP is accelerating.
Meanwhile the slowdown in Core CPI has stopped but no clear turn to the upside is visible yet.
With economic activity still strong and CPI seemingly stabilizing, the Fed can still find excuses to continue tapering.
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