The PCE reading, which stands for Personal Consumption Expenditure is a report released every month by the feds, the looks back and it measures inflation. (How much buying power the dollar lost if any)
As I wrote before, inflation is the worst enemy for long term bond or mortgage rates. With a great reading on inflation today fear of fast inflation was tamed and that means better mortgage rates.
If you care about detail read below, The PCE Report is a monthly report reporting on the previous month.
There 2 parts to this report, the PCE that includes all goods and services that a person on the personal level buys or pays for. Then there is the Core PCE, which looks at the core alone and excludes volatile Industries like food and Energy. The fed’s target rate of inflation (Yes There has to be some inflation) is 1-2% year over year.
This months’ reading was exactly 2.0 which is in the feds target Zone. Which means that the fed’s actions to keep the economy flowing paid off for now! Regards Joel Silberstein The silberstein Group
We shall see how inflation does next month Joel, when the dollar has continued to fall, and jobs are continuing to be lost...
Great Post...
Thanks Guys for reading and fro your comment I appreciate it!
Paul you meant you are wondering what it for this month, because the reports are reported always for the last month. Actually the report for the past was lousy but it was revised, I spared you guys the boring details Lol.
Klarque Yes I will keep a lid, Thats my job to suggest to clients strategies to hedge themselves against inflation, and against potential loss of opputunity due to declining real estate values.
Kent, How many? well many, here is a list of all the reports that come out this month.
Just to make your head spin a little bit.
Thanks Guys
Check out my site http://www.joelsilberstein.com/to the right upper corner, you will see a green box MMG weekly report. click on it and you can See the reports every week.
Joel,
It's good news, sorta'.
Personal Consumption Expenditure, personally I'm down to a "third degree potent consumer." I use to be a "second degree conspicuous consumer." It could be worse there are so many in the various degrees of "subsistence consumers." O'well a penny saved is one you don't have to earn.
We find what we're looking for, I'm sure no matter how good the news that the press and the lemmings will find fault.
Bill
Sure thing Bill
media will always problems no solutions!
The only thing here i would like to add is that with inflation now lower, that means a penny saved ie not invested is not such a big loss.
Thats my spin it,
Joel Silberstein
Joel, yes, I am diving into the realm of "conspiracy" but all data has to be weighed against common sense perceptions. I believe that there will be revisions upward, and that there might be some "cooking of the books" so to speak. Remember when employment data kept getting better and better during the 80's...the main reason was that the Reagan administration kept revising the definition of "unemployment."
Just being cynical. Good post!