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Market Update – Economy, Federal Reserve & Bond Market Federal Reserve’s preferred measure of inflation, Core PCE, continues to show inflation moderation. The Fed noted at its July 30 meeting that “economic uncertainty remains elevated” and “labor market conditions remain solid while unemployment is low”. Payroll data released just two days later surprised to the downside and earlier period data was revised lower.
Core Personal Consumption Expenditures Index – measures the prices paid by consumers for goods & services without the volatility caused by movements in food & energy prices to reveal underlying inflation trends.
Core PCE Index (yoy %)
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