More importantly, inflation is also proving stubborn. Some argue that the Fed should be willing to tolerate (even if only implicitly, rather than explicitly) inflation being a bit higher for a bit longer than it theoretically should. Mohamed A. El-Erian over on Bloomberg Opinion explains this “3% inflation target” view here.

The Federal Reserve's preferred inflation gauge slowed in November, the Commerce Department said on Friday — the first indication of cooling price pressures in months. Why it matters: Inflation remains too high for policymakers' comfort,

The Federal Reserve's preferred inflation measure rose for a second straight month in November, according to government data published Friday, although the increase came in a touch below expectations.