NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Investing

PCE hits a new 40-year high: ‘Fed’s willing to risk a deeper recession’

by July 31, 2022
written by July 31, 2022

S&P 500 closed over 1.0% up on Friday even after the PCE Price Index – an inflation gauge that the Fed prefers climbed to a new forty-year high.

PCE Price Index jumps to 6.8% in June

A 6.8% YoY gain in June, as per the Bureau of Economic Analysis, was the broadest seen since January 1982. Versus the prior month, the index was up 1.0%.

Reacting to the report on CNBC’s “The Exchange”, Diane Swonk (Chief Economist at KPMG) said the Fed should continue to tighten even if inflation starts to cool off in the coming months.

Will it cool enough to not become more entrenched? Fed wants to avert that mistake of the 1960s and 70s that delivered us the stagflation by not going far enough to detail the inflation.

Core PCE (excluding food and energy) was up 4.8% YoY beating the Dow Jones estimates by 0.1%.  

Fed could continue to raise rates into 2023

The U.S. economy is now in a “technical” recession that’s adding to the ongoing debate around “rate cuts” by early 2023. Swonk, though, does not see such a possibility.

I think Fed’s going to be raising rates into 2023 and then holding them to see how far that gets them. If they need to go further, they’ll go further. This is a Fed that’s willing to risk a deeper recession.

Earlier this week, Chair Jerome Powell lifted rates by 75 basis points and signalled another hike of that magnitude in September remains on the table as the labour market continues to be “tight”.

Nonetheless, U.S. equities are now up more than 10% from their year-to-date low.

The post PCE hits a new 40-year high: ‘Fed’s willing to risk a deeper recession’ appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
The Recession is Here. Will Stagflation Follow?
next post
Would You Abdicate If You Could Be the Dictator?

You may also like

Robinhood is a ‘flawed business model’: Jeff Kilburg

August 15, 2022

Walmart vs Target: Expert picks a side ahead...

August 15, 2022

Poshmark stock price forecast: Barclays sees a 45%...

August 15, 2022

Bitcoin mining stocks bounce back in August

August 15, 2022

BitGo seeks $100M+ from Galaxy Digital over merger...

August 15, 2022

This bitcoin mining stock is up big on...

August 15, 2022

Daniel Loeb re-invests in Disney: what strategic changes...

August 15, 2022

Galaxy Digital terminates acquisition of BitGo

August 15, 2022

Peter Schiff maintains bearish stance on Bitcoin, Michael...

August 15, 2022

Weber stock up 20% despite a bigger-than-expected Q3...

August 15, 2022
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Popular Posts

  • 1

    Lessons From Penny Stock Legend Tim Grittani, the $13 Million Man!

  • 2

    How To Profit From Stock Market Inefficiencies {VIDEO}

  • 3

    Tesla Inc is on a ‘knife’s edge’ heading into the Q2 report: Analyst

  • 4

    Revisiting the Sage of Monticello

  • 5

    Goldman Sachs Q2 results: ‘I’m astonished it could make this much money’

Recent Posts

  • Robinhood is a ‘flawed business model’: Jeff Kilburg

    August 15, 2022
  • Walmart vs Target: Expert picks a side ahead of retail earnings

    August 15, 2022
  • Poshmark stock price forecast: Barclays sees a 45% upside

    August 15, 2022
  • Bitcoin mining stocks bounce back in August

    August 15, 2022
  • BitGo seeks $100M+ from Galaxy Digital over merger termination

    August 15, 2022

Categories

  • Economy (101)
  • Editor's Pick (32)
  • Investing (263)
  • Stock (18)
  • About Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy
  • Contacts

Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2022 NewTradingView.com All Rights Reserved.


Back To Top
NewTradingView.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick