24 days ago • Posted by Paul de La Baume
PCE comes hot! #inflation #stocks #markets
US inflation, as measured by the PCE, came at 0.6% for Core PCE, higher than the 0.4% expected. The reading on the Fed's favorite gauge of inflation puts more pressure on the Fed to raise rates higher and keep them higher for longer. Markets reacted with stocks dropping and bond yields rising slightly, particularly the short end of the yield curve. The hot PCE doesn't change necessarily change the narrative and more importantly will be the US jobs report which will arrive on March 10, with CPI a few days later on March 14th.
