The Federal Reserve (Fed)’s preferred inflation indicator, the personal consumption expenditures (PCE) price index, accelerated growth in January, while consumer spending remained resilient, indicating that price pressures remain and demand is strong, which may strengthen the Fed’s next meeting The case for sharp rate hikes.
According to data released by the U.S. Department of Commerce on Friday (24th), the U.S. PCE price index increased by 5.4% in January, far higher than the market’s expected 5% and the revised previous value of 5.3; the PCE price index in January increased by 0.6%, higher than The market expected 0.4% and the revised previous value of 0.2%.
The inflation index preferred by the Fed, the core PCE price index in January after excluding food and energy prices rose 4.7% year-on-year, higher than market expectations of 4.3%, slightly higher than the revised previous value of 4.6%; core PCE rose 0.6% in January , 0.4% higher than market expectations and the revised previous value.
In addition, U.S. personal spending rose by 1.8% in January, which was higher than market expectations of 1.3%, and the revised value was -0.1%; U.S. personal income grew by 0.6% in January, which was lower than market expectations of 0.1%. 0.3%.
Nasdaq futures fell 1.3% after the data,S&P 500 IndexFutures fell 1%,DowFutures fell 0.9%.dollar indexIn the short term, it rose 20 points to 105.14.U.S. 10-Year Treasury Bond Yieldrose to 3.943%; the two-year bond yield rose to 4.772%, a new high since November 4 last year.
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