“The equity market seems to be delighted with the slight tick lower in inflation, as it should be, because it underscores that the Fed’s campaign is in fact working, albeit slowly. QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA So, I don’t know if it’ll have as much of an impact on what the Fed is going to do as it might have in another month or another situation.” So, it’ll be valuable for the Federal Reserve, and it will help them paint the picture of inflation but I think a lot has changed for their calculus since this data was relevant. “But this data is probably before the banking crisis kicked in.

I think seeing spending tick down, seeing prices ticked down, especially core PCE under 5%.” “The data came in a little bit better than expected which will be a benefit to the Fed. ROSS MAYFIELD, INVESTMENT STRATEGY ANALYST, BAIRD, LOUISVILLE, KENTUCKY

Treasury yield, pared a gain was up 1.1 basis points at 4.110%įOREX: The Euro was pared a slight loss and was off 0.17% and the dollar index was steady STOCKS: S&P 500 futures extended slight gains and were up 0.2%, pointing to a firm open on Wall StreetīONDS: The yield on 10-year Treasury notes slipped and was down 2.3 basis points at 3.528% The two-year U.S. The Fed tracks the PCE price indexes for its 2% inflation target. The core PCE price index rose 4.6% year-on-year after gaining 4.7% in January. Excluding food and energy, the PCE price index climbed 0.3% after increasing 0.5% in January. In the 12 months through February, the PCE price index advanced 5.0% after rising 5.3% in January. The personal consumption expenditures (PCE) price index increased 0.3% last month after accelerating 0.6% in January. consumer spending rose moderately in February, likely payback after surging the prior month, and while inflation showed signs of cooling it remained elevated, which could see the Federal Reserve raising interest rates one more time this year.

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