US:3.8%
EU falling yet still at 5.5%
This is the “core” PCE index which the Fed watches closely.
Those of us who own inflation-adjusted bonds (TIPS and I-Bonds) need to watch the CPI which those are based on.
Wendy
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The PCE was up only 3.8%, a larger than expected drop. Unfortunately the Core PCE was up 4.6%, only a slight drop from last year.
That reminds me … I meant to mention here that 5-year TIPS have gotten into the possible buying range again.
@MarkR DH and I were just discussing this. The 5-year TIPS yield is the highest it has been since the 2008 financial crisis.
Yes, I think this is a good yield. It might go higher after the Fed raises the fed fund rate again in July. But even so it’s good.
Wendy
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