Fed's Preferred Inflation Measure Comes In Cooler Than Expected As Banking Crisis Complicates Powell's Plan
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The SPDR S&P 500 ETF Trust traded higher by 0.3% on Friday morning after the Bureau of Economic Analysis reported a 5% increase in the personal consumption expenditures price index in the month of February, suggesting the Federal Reserve still has a long way to go in its battle against inflation.
The headline PCE rose 5% in February, down from 5.4% in January and a 2022 high of 6.8% in June. The February PCE reading came in below economist estimates of a 5.3% gain.
Core PCE, which excludes volatile food and energy prices and is the preferred inflation measure for the Federal Reserve, was up 4.6% in February, below economist estimates of a 4.7% gain.
The headline PCE rose 5% in February, down from 5.4% in January and a 2022 high of 6.8% in June. The February PCE reading came in below economist estimates of a 5.3% gain.
Core PCE, which excludes volatile food and energy prices and is the preferred inflation measure for the Federal Reserve, was up 4.6% in February, below economist estimates of a 4.7% gain.