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December closed the year with constructive macroeconomic backdrop; inflation, labor market dynamics, and shifting expectations for Federal Reserve policy have shaped a positive tone for markets heading into 2026.
While Inflation data was incomplete due to the government shutdown, data showed further signs of cooling. Both headline and core measures continued to drift lower, as illustrated by the Cleveland and NY Fed measures in the chart to the left. Core PCE remains above the Federal reserve target of 2%, but the overall trend has reinforced the view that the Fed’s tightening cycle has largely achieved its objective. Market‑based inflation expectations (3-yr breakeven) moved lower, reflecting confidence that the Fed is on the right path.
Markets move every day, but your financial plan is built for more than headlines. Today’s developments may influence short-term sentiment, yet your strategy is designed to align with long-term goals, risk tolerance, and time horizon.

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