In December, the PPI rose the most in three months, while an underlying gauge that strips out food and energy jumped at one of the fastest rates of 2025.

"The window for a cut under a Powell-led Fed is essentially closed. He is more optimistic about the labor market and economy overall than he was."

"Spending has remained resilient. That makes us think the decline in confidence is overdone and will rebound soon."

In November, U.S. durable goods orders rose by the most in 6 months.