Morning Market Tidbits

The BEA is updating its PCE inflation methodology, which is expected to lower recent inflation readings. However, this adjustment is unlikely to shift the Federal Reserve's view that inflation remains a significant policy challenge.

Key Takeaways

• 1.Methodology changes to core PCE will likely revise down recent inflation prints by up to 20bp.
• 2.The Fed is unlikely to alter its stance on inflation as a policy problem because the revised prints will remain above 3% and the Fed was already discounting these components.

Table of Contents

• Key takeaways
• What Matters Today: Methodology updates will likely lower recent core PCE
• Methodology changes will likely lower recent inflation
• US GDP Tracking
• Today's economic calendar
• Important Disclosures
• Other Important Disclosures
• Research Analysts

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