U.S. Consumer Spending Rebounds in March as Core Inflation Cools

The transcript discusses the current state of the US economy, focusing on the slow inflation backdrop and its implications for the Federal Reserve's monetary policy. Despite some growth in consumer spending, inflation remains below the Fed's target, posing a challenge for future rate hikes. The analysis highlights the weak quarter for core PCE and the overall tepid inflation trend, emphasizing the high bar for the Fed to consider tightening again.

What factors contributed to the weak quarter for core PCE?

• High consumer spending

• CPI and PPI components

• Increased GDP growth

• Strong market reaction

What is the Fed's stated inflation target?

• 4%

• 3%

• 2%

• 1%

Why is the overall inflation trend a concern for the Fed?

• It is above the target

• It is well below the target

• It is fluctuating rapidly

• It is not related to GDP

What needs to happen for the Fed to consider tightening policy?

• Inflation must decrease

• Consumer spending must decrease

• Inflation must stabilize

• Inflation must rise and possibly overshoot the target

How many months has core PCE hit the Fed's target during the current expansion?

• 20 months

• 15 months

• 10 months

• 5 months