← Back to dashboard
Share
23187%
r/investing
Core PCE inflation rises to 3.4% making Fed hikes soon very likely
Investor summaryBearish
Core PCE rose to 3.4%, making Fed rate hikes and balance sheet shrinkage likely, signaling a tighter macro environment.
Bear points
- Core PCE inflation rose to 3.4%, staying far from the 2% target.
- Companies are passing costs to consumers, keeping core inflation high.
- Fed rate hikes and balance sheet shrinkage are imminent, pushing up bond yields.
降息与宏观
Post body
Core PCE inflation just got released and went up from 3.3% to 3.4% so certainly not going back to the Fed's target of 2%. Headline PCE inflation even hit 4.1%.
Even if oil prices come down, core PCE will barely be affected by that, in fact companies are still passing on their cost to the consumer which will keep core PCE at this level for a long time.
Different firms like Citadel already expected hiking to start in September but even a hike at the July meeting is possible.
The other thing Fed chair Warsh may also push for is to shrink the Fed's balance sheet, which also has a thightening effect and will push up bond yields.
Discussion · top comments
No comment snapshot fetched for this post yet.