MDTA Finance and Administration Committee Meeting Materials

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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 October 29 meeting that “job gains have slowed” and “the unemployment rate has edged up”. Additionally, inflation “remains somewhat elevated” and has even “moved up since earlier in the year”. 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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