Consumers went on a bit of a spending spree in March according to the BEA’s Personal Income and Outlays Report.
Income
Prices
Real PCE
There is nothing about this report that hints toward rate cuts by the Fed.
Year-Over-Year PCE Price InflationYear-over-year PCE price inflation went from 2.5 percent last month to 2.7 percent in March.The Fed will remain on hold.
2024 Q1 GDP Underperforms ExpectationsYesterday, I reported 2024 Q1 GDP Underperforms Expectations at 1.6 Percent vs 2.3 Percent ExpectedSlowing growth but rising inflation is the worst combination for the Fed and for President Biden’s reelection hopes.More By This Author:Expect Big Negative Revisions To BLS Monthly Jobs In 2023, GDP Too
2024 Q1 GDP Underperforms Expectations At 1.6 Percent Vs 2.3 Percent Expected
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