Economic Facts To Prepare For The Elections
Notably, too, the interest and dividends component of consumer income shot higher by 6.4% in the 12 months ended July 2018 — good news to retirees.
A key inflation index that U.S. central bankers at the Federal Reserve consider in deciding interesting rate policy, the Personal Consumption Expenditure Deflator (PCED), is poignantly doing what's expected by policymakers. You're likely to hear talk on TV about inflation rearing its ugly head again.
The Fed chair, according to the minutes of the Federal Open Market Committee meeting, released last week, expects inflation to hover around 2%. It may go above 2% for a time and that is expected. But it may also go slightly below 2%. Meanwhile, at 2.3%, the PCED deflator is above the Fed's target of 2%, but the Core PCED, at 2%, is right on target — and that is the key figure. The core PCED is a basket of fixed monthly expenses that excludes gasoline and other volatile expenses. It's all about long-term expectations, which is how you want the Fed to think if you're an American investor.
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