AFMC - Fed's Wait-And-See On Rate Cuts Supported By Worst 6-Month 'Core' And 'Core Services' PCE Inflation Since Mid-2023
2024-06-01 01:30:00 ET
Summary
- The Fed’s favored core PCE price index, which excludes the volatile components of food and energy, jumped by 3.0% annualized in April from March (according to the Bureau of Economic Analysis today).
- The six-month annualized core PCE price index, which irons out most of the erratic monthly squiggles, and which Powell cites a lot, accelerated to 3.2%, the worst increase since July last year.
- Core services is where inflation has gotten entrenched, and it’s where the majority of consumer spending goes.
Not just housing, but also other core services. However, durable goods inflation is back to normal. ...
Fed's Wait-And-See On Rate Cuts Supported By Worst 6-Month 'Core' And 'Core Services' PCE Inflation Since Mid-2023