Chicago Fed President Austan Goolsbee Warns Inflation 'Going the Wrong Way' After May PCE Rises to 4.1%
Chicago Fed President Austan Goolsbee said U.S. inflation is 'going the wrong way' after Commerce Department data showed the Personal Consumption Expenditures price index (PCE) accelerated in May to 4.1% from 3.8% in April, marking its highest reading since April 2023. Core PCE, the Federal Reserve's preferred gauge that strips out volatile food and energy prices, rose to 3.4%, the fastest pace since October 2023.
Speaking on CNBC, Goolsbee noted that the monthly report showed some 'glimmers of hope' regarding services inflation, but emphasized that it remains well above the central bank's 2% target. He cautioned that consumers spending aggressively based on expected future income gains could exacerbate price pressures, calling the inflation side of the Fed's mandate 'clearly the problem.' The economic data also included an upward revision for first-quarter GDP, which accelerated to a 2.1% annualized pace, and weekly initial jobless claims falling to 215,000.
From the sources (25 posts)
@firstsquawkSPAIN PPI (M/M) MAY: 1.0% (PREV 1.7%; PREV R 2.0%)
@financialjuiceCHICAGO NATIONAL ACTIVITY INDEX ACTUAL -0.1 (FORECAST 0.15, PREVIOUS 0.14) $MACRO
@deitaoneUS JOBLESS CLAIMS -12K TO 215K IN JUN-20 WK; SURVEY 223K US JUN-13 WEEK CONTINUING CLAIMS +21K TO 1,821,000 US JUN-13 WEEK JOBLESS CLAIMS REVISED TO 227K
@firstsquawkUS INITIAL JOBLESS CLAIMS ACTUAL: 215K VS 226K PREVIOUS; EST 225K
@financialjuice🔴 US INITIAL JOBLESS CLAIMS ACTUAL 215K (FORECAST 225K, PREVIOUS 226K) $MACRO
@firstsquawkUS GDP (QOQ) (Q1) ACTUAL: 2.1% VS 1.6% PREVIOUS; EST 1.6%
@financialjuiceUS CONTINUED JOBLESS CLAIMS ACTUAL 1.821M (FORECAST 1.8015M, PREVIOUS 1.810M) $MACRO
@cryptoroverBREAKING: 🇺🇸 US PCE DATA PCE (YoY): ACTUAL: 4.1% vs. EXPECTED: 4.1% CORE PCE (YoY): ACTUAL: 3.4% vs. EXPECTED: 3.4%
@financialjuice🔴 US DURABLE GOODS ACTUAL -4.5% (FORECAST -5%, PREVIOUS 8.0%) $MACRO
@financialjuiceUS CORE DURABLE GOODS ACTUAL 1.3% (FORECAST 0.6%, PREVIOUS 1.1%) $MACRO
@bulltheoryioBREAKING: PCE Price Index came in at 4.1% Expectations: 4.1% The highest reading since April 2023.
@financialjuiceUS PERSONAL INCOME MOM ACTUAL 0.7% (FORECAST 0.4%, PREVIOUS 0.0%) $MACRO
@financialjuice🔴 US GDP QOQ FINAL ACTUAL 2.1% (FORECAST 1.6%, PREVIOUS 1.6%) $MACRO
@zerohedgePCE 0.4% MoM, Exp. 0.5% PCE Core 0.3% MoM, Exp. 0.3% PCE 4.1% YoY, Exp. 4.1% PCE Core 3.4% YoY, Exp. 3.4%
@maxcrypto🚨 BREAKING 🚨 🇺🇸 US PCE came in at 4.1% Expectations: 4.1%
@financialjuiceUS GDP DEFLATOR SA FINAL ACTUAL 3.6% (FORECAST -, PREVIOUS 3.5%) $MACRO
@deitaone*US MAY PCE PRICE INDEX RISES 0.4% M/M; EST. +0.5% *US MAY PCE PRICE INDEX RISES 4.1% Y/Y; EST. +4.1% *US MAY CORE PCE PRICE INDEX RISES 0.3% M/M; EST. +0.3% *US MAY CORE PCE PRICE INDEX RISES 3.4% Y/Y; EST. +3.4%
@firstsquawkUS CORE PCE PRICE INDEX (MOM) (MAY) ACTUAL: 0.3% VS 0.2% PREVIOUS; EST 0.3%
@zerohedgePersonal Income 0.7%, Exp. 0.4% Personal Spending 0.6%, Exp. 0.4% Real Personal Spending 0.3%, Exp. 0.2%
@firstsquawkUS CORE PCE PRICE INDEX (YOY) (MAY) ACTUAL: 3.4% VS 3.3% PREVIOUS; EST 3.4%
@firstsquawkUS PERSONAL SPENDING (MOM) (MAY) ACTUAL: 0.7% VS 0.5% PREVIOUS; EST 0.6%
@firstsquawkUS DURABLE GOODS ORDERS (MOM) (MAY) ACTUAL: -4.5% VS 8.0% PREVIOUS; EST -5.0%
@deitaoneUS 1Q FINAL GDP +2.1% VS PRELIM GDP +1.6%
@stockmktnewz215K people filed for unemployment this past week in the United States 🇺🇸 below expectations 225K
@zerohedgeGDP Q2 second revision 2.1%, Exp. 1.6%, Last 1.6%