The Commerce Department is set to release the February reading for the personal consumption expenditures price index, which is considered the Federal Reserve’s most important inflation measure. CNBC TV will be providing special coverage starting at 8:15 a.m. ET, with the data being released at 8:30 a.m. ET. U.S. financial markets will be closed on Friday for Good Friday, so the analysis of the numbers and its implications for markets will take place on Monday.
Excluding food and energy, the core index is expected to increase by 0.3% in February and by 2.8% from a year ago, according to the Dow Jones consensus estimate. This follows rises of 0.4% and 2.8% in January. The main number, on the other hand, is expected to rise by 0.4% and by 2.5%, compared to 0.3% and 2.4% previously. The Federal Reserve looks at both numbers, but considers the core index to be a more reliable indicator of longer-term inflation trends.
In addition to the PCE numbers, the Commerce Department will also release figures for personal income and consumer spending. It is expected that there will be respective increases of 0.4% and 0.5% in these areas. These numbers will provide further insights into the state of the economy and help to determine future monetary policy decisions by the Federal Reserve.
The Fed aims to achieve its goal of getting inflation to 2%, but recent numbers may make that task more challenging. Long-term inflation expectations have been rising, which could pose potential challenges for the Fed in the future. This could also impact future interest rate decisions and other monetary policy tools used by the central bank to manage inflation and economic growth.
Following the release of the PCE data and associated figures, CNBC will provide analysis and insights into what the numbers mean for markets and the broader economy. By examining these key economic indicators, investors will gain a better understanding of the current state of the economy and potential impacts on financial markets. The Federal Reserve will also closely monitor these numbers to make informed decisions about future monetary policy actions.
For further updates and analysis on economic trends and developments, viewers can subscribe to CNBC on YouTube. By staying informed about key economic indicators and data releases, investors can make more informed decisions about their investment strategies and be better prepared for potential market fluctuations. The Federal Reserve’s goal of maintaining stable inflation and economic growth is crucial for ensuring a healthy and stable economy.
