Lots of celebrating on the weak Core PCE print. It was indeed soft, but was fully telegraphed after CPI/PPI. I continue to view it as more of a fluke print than anything meaningful about the trend. When you have a huge amount of categories that are positive, or negative, both are a fade. When you are in a higher volatility regime, that’s just basic statistics. Of course, the celebrations love to point out that the 4 months of hotter inflation were the fluke, not the 1 weak one. Ok, I guess we shall see, but I’d like to see a trend before making such a statement, otherwise that is cherrypicking data.
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