Fed's Go-To Inflation Gauge Hits The Mark, Personal Income Surges In January
Portfolio Pulse from Piero Cingari
The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditure (PCE) price index for January, matched expectations, indicating progress towards the 2% inflation target. The annual PCE inflation rate slightly decreased from December's 2.6% to 2.4%, aligning with forecasts. Core PCE inflation also met expectations, with a year-on-year increase of 2.8%. Personal income in January rose by 1%, surpassing expectations, while personal spending growth slowed to 0.2%. Weekly jobless claims were slightly above expectations. Following the release, U.S. Treasury yields fell, and the U.S. dollar index, as tracked by the Invesco DB USD Index Bullish Fund ETF (UUP), dipped.
February 29, 2024 | 1:38 pm
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The Invesco DB USD Index Bullish Fund ETF (UUP) experienced a slight dip following the release of the PCE inflation data, which matched expectations.
The UUP's movement is directly tied to the U.S. dollar's performance. Given the inflation data met expectations, suggesting stability, the slight dip in UUP could reflect immediate market reactions to the broader economic indicators presented, including personal income growth and jobless claims. However, this impact is considered short-term as it's based on immediate market sentiment rather than fundamental changes.
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