Inflation Alert! PCE inflation in the past 12 months was 5% with a 0.2% rise in October. In his speech yesterday, JPow stated: “Core inflation often gives a more accurate indicator of where overall inflation is headed”


The PCE Price Index Excluding Food and Energy, also known as the core PCE price index, is released as part of the monthly Personal Income and Outlays report. The core index makes it easier to see the underlying inflation trend by excluding two categories – food and energy – where prices tend to swing up and down more dramatically and more often than other prices. The core PCE price index is closely watched by the Federal Reserve as it conducts monetary policy.

Remember, the Fed's stated goal for PCE inflation is 2%. The media will say this is a 'slowdown' of inflation today but PCE was 5.4% in February (then a 40 year high).

If going by their stated goal, they are only off by what 150%? Guess that's good enough to slow down on the size of the rate hikes...

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