Inflation, Fed and spending
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Core PCE price index jumps MoM by most in 13 months on non-housing services.
Reuters |
The Personal Consumption Expenditures (PCE) price index increased 0.3% in February after advancing by an unrevised 0.3% in January, the U.S. Commerce Department said on Friday.
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The U.S. Federal Reserve has a dual mandate. First, it's tasked with keeping inflation under control, which means ensuring the Consumer Price Index (CPI) increases by around 2% per year. Second, the central bank aims to keep the economy operating at full employment -- although it doesn't have a specific target for the unemployment rate.
The chart below reflects all Fed rate cuts and hikes since 1980 ... After that rate cut on March 16, 2020, the Wilshire 5000 Total Market Index XX:W5000FLT rose 45.2% over the subsequent six ...
Even so, the federal funds rate remains the highest since 2007, according to a Bankrate analysis of historic Fed moves. The big question is when the Fed could get back to cutting interest rates.
The Federal Reserve has a dual mandate of promoting maximum employment and stable prices, which it tries to foster by targeting low and stable inflation of 2%. Here's how one widely watched measure of inflation,
the below chart undeniably shows that periods of high interest rates have often foreshadowed recessions, dating back to the 1960s: It turns out the Fed isn't very good at timing interest rate cuts ...
At 05:25 ET (09:25 GMT), the Dollar Index, which... Gold prices fall from record highs as dollar firms on easing rate cut bets By Investing.com - Mar 21, 2025 Investing.com-- Gold prices fell in Asian trade on Friday, extending a fall from recent record ...
The Philly Fed said its diffusion index for current general activity slid to 12.5 in March after plunging to 18.1 in February, although a positive reading still indicates growth. Economists had ...
The unemployment rate is seen edging up to 4.4% from 4.3% previously. "There are so many things we don’t know," Fed Chair Jerome Powell said at a press conference Wednesday, and "uncertainty is ...