You may have heard about today’s shopping blackout/boycott of large retailers. Not being an active participant in conversations raging against the machine, I was unaware of the movement until I read a Time headline about the planned coup this morning.
Uncoincidentally I’m sure, the report on Personal Spending was released today showing that we spent -0.2% less this month than last, while we earned 0.9% more during the same period. Way to go us; we’re collectively more fiscally responsible for the first time in many, many months! And congratulations to you Farmers out there whose incomes together increased 39% last month. I’m glad you’re getting your just deserves, even though I’m way overpaying for for my eggs.
The much awaited Personal Consumption Expenditures report was also released this morning. Unlike Personal Spending, PCE does not include food and energy because those sectors are more volatile (think gas and eggs) and tend to skew the numbers (Personal Spending for example dropped 1% over the last 30 days). So the Fed relies on PCE as it’s favorite measure of steady-eddy inflation and seeing it drop from last month’s 2.9% to 2.6% this month is reassuring that costs as a whole are steadily declining.
True to their “wait and see” approach though, the current likelihood of a another Fed rate cut is not expected until June 18 at the earliest, and not statistically probable until the July 30 FOMC meeting. Independent mortgage rates however, are on their way down after the aforementioned reports make it clear that for the most part, the plan is working. Not spending any money today–the last day in February–will only help to further improve PS & PCE data next month. So if you’re into that kind of thing, knock yourself out and make a difference in the world. I applaud your resolve; plus that means shorter checkout lines for the rest of us.
