Federal Reserve's Inflation Measure and Consumer Spending Report
The Federal Reserve's key inflation measure rose more than expected in February while consumer spending had a smaller than projected increase. Economists had forecasted lower numbers for both. The report shows that consumer spending increased 0.4% for the month, below the 0.5% forecast, while personal income rose by 0.8% against the estimated 0.4%. Stock market futures briefly moved lower following the release as did Treasury yields.
Key Points
- Core PCE inflation rate at 2.8%
- Consumer spending increased by 0.4%
- Personal income rose by 0.8%
Pros
- Inflation measure rose more than expected
- Consumer spending increased, indicating economic activity
Cons
- Consumer spending had a smaller than projected increase
- Stock market futures and Treasury yields briefly moved lower