Highlights of the October PCE report
Prior was 2.0% (revised to 1.9%)
Core +0.1% m/m vs +0.2% expected
Deflator 2.0% vs 2.1% y/y expected
Deflator +0.2% vs +0.2% m/m expected
You have to believe that Powell had these numbers yesterday. Even if he didn't, his emphasis on data dependency is a reason to shift towards a pause.
Income/spending:
Personal income +0.5% vs +0.4% exp
Prior personal income +0.2%
Personal spending +0.6% vs +0.4%
Prior personal spending +0.4% (revised to +0.2%)
These numbers are a bit better, especially the wage inflation component. The rise in spending is mitigated by the revision.
The US dollar is at the lows of the data after the release.
