The Fed's favorite inflation measure came in cooler than expected. 📉
But there's an important detail buried underneath today's PCE report: the methodology used to calculate several components changed, including portfolio management, legal services and computer software.
Historical numbers were revised too.
That doesn't make today's report meaningless. Cooler inflation is good news. But when the measurement changes, you need to know that before comparing today's numbers with what was previously reported.
And core PCE is still running well above the Fed's 2% target.
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Russell McDonald | NMLS 290837 | Broker CA DRE 01150730
Wymac Capital Inc | NMLS 18766 | Broker CA DRE 01121628
Real Estate Broker – CA Dept of Real Estate #Inflation #PCE #FederalReserve #MortgageRates #Economy