December Core PCE came in lighter than forecasts, printing at 0.37%. This softer inflation reading is reshaping near-term economic expectations, and analysts are now lifting their Q4 GDP tracking estimate to +2.2%—a meaningful jump that signals resilience in growth momentum despite cooling price pressures. For traders watching macro headwinds, this data point matters: when core inflation cools while growth holds steady, it typically eases Fed policy concerns and can shift market sentiment toward risk-on positioning. The combination suggests the economy's walking a tighter rope between inflation control and sustained expansion.