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  • Higher US GDP & Core PCE Change Nothing for the Fed

    From scotiabank.com

    Stronger than expected US GDP growth is welcome, but not narrative busting for the Fed’s path to easing. Nor is an upside surprise on Q2 core PCE. I’ll explain why along with the details. Core PCE Surprises Higher Q2 core PCE inflation was hotter than expected at 2.9% q/q SAAR (2.7% consensus and Scotia). This must be due to monthly revisions, but we’ll find out for sure tomorrow. If there were no revisions to available data up to May, then June core PCE would have to be up by about 0.35% m/m SA which seems implausible given what we know about core CPI that was only 0.06% m/m SA higher. Q1 core PCE was not ... (full story)

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