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inflation concerns persist as economists project gradual deceleration through 2025
The stock market has begun a 'Santa Claus' rally, but inflation remains a significant concern for the US economy, projected to stay above the Federal Reserve's 2% target into 2025. Core inflation is expected to hit 2.5% next year, influenced by rising costs in services and potential inflationary policies from the incoming Trump administration. Economists warn that these factors could complicate the Fed's interest rate strategy, with only two rate cuts anticipated next year.