Today’s PCE measurements of inflation was worse than expected. Month to month increase was 0.3% and the core year to year was 2.8% which is rising.
How could one expect an interest rate cut when inflation is increasing, and bear in mind it is likely that the Fed had access to this PCE data yesterday before it became public this morning, so it probably was incorporated into their decision to not cost rates.
For those who have not followed the game, PCE is a broader measure of inflation than the CPI, which is generally constrained to Urban prices.
Note also that the May PCE was revised upwards 0.1%.
Oh, and when the PCE reports as it did, is best to ignore everything after the word “as”.
The media will report it “as Trump’s tariffs affect prices”.
Just ignore that. The prices are rising and inflation is ramping for reasons that they have nothing to do with tariffs, and indeed for reasons that potentially no one knows anything about.