{"id":1398,"date":"2023-02-24T11:03:09","date_gmt":"2023-02-24T16:03:09","guid":{"rendered":"https:\/\/embarrdowns.com\/pce-price-index-rises-0-6-fed-notes-risk-of-further-rate-hikes\/"},"modified":"2023-02-24T11:03:10","modified_gmt":"2023-02-24T16:03:10","slug":"pce-price-index-rises-0-6-fed-notes-risk-of-further-rate-hikes","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/pce-price-index-rises-0-6-fed-notes-risk-of-further-rate-hikes\/","title":{"rendered":"PCE Price Index Rises 0.6%, Fed Notes Risk of Further Rate Hikes"},"content":{"rendered":"

The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred gauge of inflation, rose 0.6% in January from the month prior, and 5.4% from the same month last year.[0]<\/a><\/sup> Excluding volatile food and energy components, core prices increased by 0.6% for the month and 4.7% from the previous year.[1]<\/a><\/sup> Additionally, January’s personal spending increased 1.1%, its biggest advance since March 2021.[2]<\/a><\/sup><\/p>\n

The minutes from the Fed’s January 31 and February 1 meeting showed that while there were signs of inflation easing, central bank officials were still concerned about rising prices.[3]<\/a><\/sup> Investors sought safety on Thursday after it was noted that further interest rate hikes are likely, causing yields to drop.[4]<\/a><\/sup><\/p>\n

Data released on Friday showed that personal income rose 1.2% in January, while consumer spending increased 1.4%.[5]<\/a><\/sup> The University of Michigan consumer sentiment index came in at 66.4, unchanged from the mid-month flash reading.[6]<\/a><\/sup><\/p>\n

Oil prices rose 0.9%, supported by prospects of reduced supply from Russia, but a weekly build in US crude stockpiles limited the upside potential.[6]<\/a><\/sup><\/p>\n

Meanwhile, the stock market saw declines on Friday, with the Nasdaq Composite (COMP.IND) finishing 0.1% lower, the S&P 500 (SP500) ending down 0.2%, and the Dow (DJI) closing 0.3% lower.[5]<\/a><\/sup> The 10-year U.S. Treasury yield ticked lower to 3.87% Thursday, falling for a second-straight session, but moved higher to 3.94% Friday morning.[7]<\/a><\/sup><\/p>\n

Shares of Dow component Boeing Co. (BA) fell 4.5% as the airplane maker halted deliveries of the 787 Dreamliner.[8]<\/a><\/sup> The Federal Aviation Administration said deliveries were temporarily halted as Boeing is conducting additional analysis on a fuselage component.[8]<\/a><\/sup><\/p>\n

Cleveland Fed President Loretta Mester said a bigger-than-expected rise in the central bank\u2019s preferred inflation gauge shows the need to keep raising rates.[0]<\/a><\/sup> On Wednesday, James Bullard, President of the Federal Reserve Bank of St. Louis, who is not part of the FOMC voting committee this year but is a prominent hawk, suggested that the Fed’s target rate might need to be increased from the current 4.5% – 4.75% to between 5.25% and 5.5%.[9]<\/a><\/sup><\/p>\n

0. <\/span>“Tech Crushed as Bond Yields Climb on Hot Inflation: Markets Wrap” Yahoo! Voices, 24 Feb. 2023, https:\/\/www.yahoo.com\/now\/asia-stocks-open-mixed-bumpy-224011362.html<\/a><\/a><\/p>\n

1. <\/span>“Stock market news today: Stocks slide after hotter-than-expected key inflation print” Yahoo News, 24 Feb. 2023, https:\/\/news.yahoo.com\/stock-market-news-today-february-24-2023-104349492.html<\/a><\/a><\/p>\n

2. <\/span>“Markets Today: Stock Indexes Fall as PCE Inflation Accelerates” Barchart, 24 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14522916\/markets-today-stock-indexes-fall-as-pce-inflation-accelerates<\/a><\/a><\/p>\n

3. <\/span>“S&P 500, Dow slide again after another hawkish signal from Fed; Nasdaq posts gain” Seeking Alpha, 22 Feb. 2023, https:\/\/seekingalpha.com\/news\/3939382-sp-500-dow-slide-again-after-another-hawkish-signal-from-fed-nasdaq-posts-gain<\/a><\/a><\/p>\n

4. <\/span>“Treasury yields dip as investors assess Fed policy outlook” CNBC, 23 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/23\/us-treasury-yields-investors-assess-fed-policy-outlook.html<\/a><\/a><\/p>\n

5. <\/span>“Stock Market News Today: Stocks in the Red after Hot Inflation Report” TipRanks, 24 Feb. 2023, https:\/\/www.tipranks.com\/news\/stock-market-news-today-futures-trend-down-ahead-of-key-economic-data<\/a><\/a><\/p>\n

6. <\/span>“PCE Inflation Outlook Fuels Premarket Losses for US Equity Futures” msnNOW, 24 Feb. 2023, https:\/\/www.msn.com\/en-us\/money\/markets\/pce-inflation-outlook-fuels-premarket-losses-for-us-equity-futures\/ar-AA17TcYf<\/a><\/a><\/p>\n

7. <\/span>“Dow Jones Dives 400 Points On Hot Inflation Report; Tesla Stock Skids” Investor’s Business Daily, 24 Feb. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-fall-200-points-ahead-of-key-inflation-report\/<\/a><\/a><\/p>\n

8. <\/span>“Dow falls more than 300 points after Fed\u2019s favorite inflation gauge runs hotter than expected” MarketWatch, 24 Feb. 2023, https:\/\/www.marketwatch.com\/story\/u-s-stock-futures-weaken-ahead-of-key-inflation-data-efb982a2<\/a><\/a><\/p>\n

9. <\/span>“So Long, Losing Streak? Stocks, Yields Climb as Market Mulls Fed Minutes, Hot Jobs Data, GDP – Ticker Tape” The Ticker Tape, 23 Feb. 2023, https:\/\/tickertape.tdameritrade.com\/market-news\/so-long-losing-streak-stocks-yields-climb-as-market-mulls-fed-minutes-hot-jobs-data-gdp-19400<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred gauge of inflation, rose 0.6% in January from the month prior, and 5.4% from the same month last year.[0]<\/a><\/sup> Excluding volatile food and energy components, core prices increased by 0.6% for the month and 4.7% from the previous year.[1]<\/a><\/sup> Additionally, January’s personal spending increased 1.1%, its biggest advance since March 2021.[2]<\/a><\/sup><\/p>\n

The minutes from the Fed’s January 31 and February 1 meeting showed that while there were signs of inflation easing, central bank officials were still concerned about rising prices.[3]<\/a><\/sup> Investors sought safety on Thursday after it was noted that further interest rate hikes are likely, causing yields to drop.[4]<\/a><\/sup><\/p>\n

Data released on Friday showed that personal income rose 1.2% in January, while consumer spending increased 1.4%.[5]<\/a><\/sup> The University of Michigan consumer sentiment index came in at 66.4, unchanged from the mid-month flash reading.[6]<\/a><\/sup><\/p>\n

Oil prices rose 0.9%, supported by prospects of reduced supply from Russia, but a weekly build in US crude stockpiles limited the upside potential.[6]<\/a><\/sup><\/p>\n

Meanwhile, the stock market saw declines on Friday, with the Nasdaq Composite (COMP.IND) finishing 0.1% lower, the S&P 500 (SP500) ending down 0.2%, and the Dow (DJI) closing 0.3% lower.[5]<\/a><\/sup> The 10-year U.S. Treasury yield ticked lower to 3.87% Thursday, falling for a second-straight session, but moved higher to 3.94% Friday morning.[7]<\/a><\/sup><\/p>\n

Shares of Dow component Boeing Co. (BA) fell 4.5% as the airplane maker halted deliveries of the 787 Dreamliner.[8]<\/a><\/sup> The Federal Aviation Administration said deliveries were temporarily halted as Boeing is conducting additional analysis on a fuselage component.[8]<\/a><\/sup><\/p>\n

Cleveland Fed President Loretta Mester said a bigger-than-expected rise in the central bank\u2019s preferred inflation gauge shows the need to keep raising rates.[0]<\/a><\/sup> On Wednesday, James Bullard, President of the Federal Reserve Bank of St. Louis, who is not part of the FOMC voting committee this year but is a prominent hawk, suggested that the Fed’s target rate might need to be increased from the current 4.5% – 4.75% to between 5.25% and 5.5%.[9]<\/a><\/sup><\/p>\n

0. <\/span>“Tech Crushed as Bond Yields Climb on Hot Inflation: Markets Wrap” Yahoo! Voices, 24 Feb. 2023, https:\/\/www.yahoo.com\/now\/asia-stocks-open-mixed-bumpy-224011362.html<\/a><\/a><\/p>\n

1. <\/span>“Stock market news today: Stocks slide after hotter-than-expected key inflation print” Yahoo News, 24 Feb. 2023, https:\/\/news.yahoo.com\/stock-market-news-today-february-24-2023-104349492.html<\/a><\/a><\/p>\n

2. <\/span>“Markets Today: Stock Indexes Fall as PCE Inflation Accelerates” Barchart, 24 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14522916\/markets-today-stock-indexes-fall-as-pce-inflation-accelerates<\/a><\/a><\/p>\n

3. <\/span>“S&P 500, Dow slide again after another hawkish signal from Fed; Nasdaq posts gain” Seeking Alpha, 22 Feb. 2023, https:\/\/seekingalpha.com\/news\/3939382-sp-500-dow-slide-again-after-another-hawkish-signal-from-fed-nasdaq-posts-gain<\/a><\/a><\/p>\n

4. <\/span>“Treasury yields dip as investors assess Fed policy outlook” CNBC, 23 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/23\/us-treasury-yields-investors-assess-fed-policy-outlook.html<\/a><\/a><\/p>\n

5. <\/span>“Stock Market News Today: Stocks in the Red after Hot Inflation Report” TipRanks, 24 Feb. 2023, https:\/\/www.tipranks.com\/news\/stock-market-news-today-futures-trend-down-ahead-of-key-economic-data<\/a><\/a><\/p>\n

6. <\/span>“PCE Inflation Outlook Fuels Premarket Losses for US Equity Futures” msnNOW, 24 Feb. 2023, https:\/\/www.msn.com\/en-us\/money\/markets\/pce-inflation-outlook-fuels-premarket-losses-for-us-equity-futures\/ar-AA17TcYf<\/a><\/a><\/p>\n

7. <\/span>“Dow Jones Dives 400 Points On Hot Inflation Report; Tesla Stock Skids” Investor’s Business Daily, 24 Feb. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-fall-200-points-ahead-of-key-inflation-report\/<\/a><\/a><\/p>\n

8. <\/span>“Dow falls more than 300 points after Fed\u2019s favorite inflation gauge runs hotter than expected” MarketWatch, 24 Feb. 2023, https:\/\/www.marketwatch.com\/story\/u-s-stock-futures-weaken-ahead-of-key-inflation-data-efb982a2<\/a><\/a><\/p>\n

9. <\/span>“So Long, Losing Streak? Stocks, Yields Climb as Market Mulls Fed Minutes, Hot Jobs Data, GDP – Ticker Tape” The Ticker Tape, 23 Feb. 2023, https:\/\/tickertape.tdameritrade.com\/market-news\/so-long-losing-streak-stocks-yields-climb-as-market-mulls-fed-minutes-hot-jobs-data-gdp-19400<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1397,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1398"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1398"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1398\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1397"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}