PCE Index comes in much hotter than expected…Ira’s Morning Flash Video for 2 24 2023

by | Feb 28, 2023 | Silver IRA

PCE Index comes in much hotter than expected…Ira’s Morning Flash Video for 2 24 2023




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The PCE Index, a measure of inflation in the U.S., came in much hotter than expected in February. The index, which is released by the Bureau of Economic Analysis, was up 0.4% from January, far above the 0.1% increase that had been forecast by economists.

The increase was driven by a surge in prices for goods and services, including food, shelter, and medical care. Food prices were up 0.7%, while shelter prices rose 0.6%. Medical care prices rose 0.3%.

The hotter-than-expected inflation readings come as the U.S. economy is showing signs of strength. Consumer spending has been strong, and job growth has been robust. The Federal Reserve has also been raising interest rates in an effort to keep inflation in check.

The strong inflation numbers could be a sign that the economy is growing faster than expected, which could push the Fed to raise rates even further. That could put a damper on economic growth, as higher interest rates could make it more expensive for consumers and businesses to borrow money.

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The PCE Index is closely watched by the Fed, as it is the central bank’s preferred measure of inflation. The index is based on a basket of goods and services that are used to track changes in prices.

For now, the strong inflation readings are unlikely to derail the Fed’s plans to keep interest rates low. But if the PCE Index continues to come in much hotter than expected, the central bank may have to reconsider its stance.

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