How is the US consumer doing? That question is on markets’ minds for quite some time. Apart from core PCE – the Fed’s preferred inflation gauge – the Personal Spending figure is of high interest. They are published simultaneously and that means fireworks.
Click here to join the live coverage on Discord
Join FXStreet Premium to ask our analysts questions live, read exclusive, actionable analysis, and get Gold and signal alerts.
Why these figures matter
The Federal Reserve (Fed) aims for 2% inflation – and its measure is the core Personal Consumption Expenditure (core PCE). While it is published after the Consumer Price Index (CPI) report, this seemingly lagging indicator matters – because the Fed says it does.
Core PCE is set to remain above the 2% YoY level, and any upside surprise may trigger worries of higher interest rates.
This time, Personal Spending will have its say. Similar to core PCE, it is a late look at consumption – but this time, it is of higher importance after the earlier Retail Sales report for January showed a substantial decline. Moreover, two consumer sentiment surveys declined sharply.
With end-of-month flows in the mix, volatility could explode.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and, for Premium members, the ability to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi’s webinars, trade plans, and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
