The Personal Consumption Expenditures (PCE) price index — the Fed’s preferred inflation measuring tool — rose 0.4% in September and 3.4% year-over-year. Core PCE came in line with economic forecasts, cooling to 3.7%.
DoubleLine Deputy Chief Investment Officer Jeffrey Sherman sits down with Yahoo Finance Live to talk about what the new inflation print could mean for the Fed’s interest rate strategy ahead of its November FOMC meeting.
“When I look at the report, too, on PCE, there’s a little disconcerting behavior in here,” Sherman says, adding: “When you continue to look at this all year, we’ve seen an increase in spending that outstrips the increase in earnings on the income side. This just means there’s effectively a drawn savings out there. And I know this has been something that the Fed has focused on, a lot of Wall Street has focused on, is this concept of excess savings in the marketplace.”
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
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