The BEA released the Fed’s preferred measure of inflation today, the Core PCE. Let’s take a gander:
Personal income increased $233.7 billion (1.0 percent at a monthly rate) in January, according to estimates released today by the Bureau of Economic Analysis (tables 2 and 3). Disposable personal income (DPI), personal income less personal current taxes, increased $67.6 billion (0.3 percent) and personal consumption expenditures (PCE) increased $43.9 billion (0.2 percent).
The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.4 percent (table 5). Real DPI decreased less than 0.1 percent in January and real PCE decreased 0.1 percent; goods decreased 1.1 percent and services increased 0.4 percent (tables 3 and 4).
source: bea.gov
Increases are still coming on deck so we don’t expect the Fed to be eager to cut rates anytime soon. While the financial world hangs on hopes of interest rate cuts, we think there is a chance for rate hikes so stay tuned, stay profitable and stay solvent…