The recent Personal Consumption Expenditures (PCE) inflation report has unveiled some unexpected insights into the financial behavior of the average American. Contrary to expectations, the shock was not in the inflation rate but in the significant increase in personal income and the corresponding decrease in spending. These trends have substantial implications for investors, particularly those who continue to hold onto cash and other low-yield assets.
Surprising insights from the PCE inflation report
The PCE inflation report for January showed that inflation came in exactly as expected at 2.8%. This figure aligns with the Federal Reserve’s target and suggests a stable economic environment. However, the real surprise was in the data on
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