A lower than forecast PCE number helped list Wall Street as investors look to the Fed to lower interest rates. The PCE came in at 1.9% which is the lowest in three years and below the Fed's target of 2%. Investors seem to be betting that the Fed will cut rates to 5% by the end of the year.

 

Submitted: Jul 31, 2007    Views: 234    Comments: 2    Likes: 2   


View Article: http://www.forbes.com/markets/2007/07/31/personal-consumption-expen...


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Comments Received:

AronLiv
AronLiv

The Fed seems to want to look at the most convenient inflation numbers - those that exclude food and energy - in order to save the housing bubble. Robert Shiller at Yale made the point on Bloomberg today that the Fed's function isn't to save the housing market from the affect of resets, and that it wouldn't necessarily be bad if housing becomes more affordable.

Posted: Jul 31, 2007

Mr Mom

What are personal consumption numbers? Aren't they the amount people spend? Aren't they different than the CPI? Someone help me.

Posted: Jul 31, 2007



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