PCE Price Index Rises for January ๐Ÿ“ˆ

Table of Contents

PCE Price Index Rises for January

One of the Federal Reserveโ€™s most watched gauges, the personal consumption expenditures price index, just saw a larger-than-expected rise for the month of January. This sent markets falling on Friday, finishing the week off as the worst for markets throughout 2023. Following several hotter-than-expected economic reports for January such as the year-over-year CPI, retail sales, and PPI, the newly released PCE index helps judge inflationary pressures on the American consumer. It specifically measures the price at which American citizens pay for goods and services; this monthly data point, which several experts believe is closely followed by the Fed, climbed 0.6% in January when compared to December, being up 4.7% year-over-year. The core PCE price index, which excludes food and energy prices, similarly rose by 0.6%. Accordingly, personal spending rose 1.1% in the month, the largest monthly increase since March of 2021.

After several synchronized economic reports, several now believe the Fed may continue to pursue their aggressive tightening cycle to limit this persistence in inflation. After a 25-basis-point hike in January, Fed Chair Jerome Powell took a dovish stance, hinting at a pause that could come as soon as after the next meeting on March 21st. Now, with 53-year low unemployment levels and the resurgence of prices, several investors would like some additional guidance on if the Fed will keep this same plan, or if the inverse will become true. Other prominent voices include St. Louis Fed President James Bullard, which believes a โ€œsoft landingโ€ is still feasible so long more rate hikes ensue. Bullard advocates for a top benchmark rate of 5.4%, currently 65 basis points over the present top federal funds rate of 4.75%. Regardless, markets have continued to price lower with worries the Federal Reserveโ€™s actionโ€™s may continue to cripple companyโ€™s margins.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
The Crude Oil Bust ๐Ÿ›ข

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns ๐Ÿค–

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visaยฎ Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.