Fed's Preferred Inflation Gauges Rose in January

The transcript discusses recent economic data, highlighting personal spending and inflation rates. It examines market reactions, particularly in stocks and bonds, and considers potential Federal Reserve actions. The impact of inflation on corporate revenue and GDP is analyzed, along with differences between CPI and PCE indices. The discussion also touches on wage increases and Social Security adjustments.

What was the percentage increase in personal spending compared to expectations?

• 1.6%

• 2.0%

• 1.8%

• 1.4%

How did the bond market react to the recent economic data?

• Yields increased by 5 basis points

• Yields increased by 10 basis points

• Yields remained unchanged

• Yields decreased by 5 basis points

What might the Federal Reserve have done differently if they had the January data during their February meeting?

• Increased rates by 50 basis points

• Kept rates unchanged

• Increased rates by 25 basis points

• Decreased rates by 25 basis points

What is the significance of the rising savings rate in the current economic context?

• It indicates increased consumer debt

• It shows consumers are saving more

• It reflects a decrease in nominal GDP

• It suggests a decrease in consumer spending

What is a key difference between CPI and PCE core deflator?

• CPI has a larger housing component

• CPI includes insurance payments

• PCE includes insurance payments

• PCE has a larger housing component

How do wage increases in January typically affect the economic data?

• They contribute to higher income levels

• They lead to lower Social Security payments

• They have no significant impact

• They decrease overall income levels

What was the percentage increase in Social Security payments this year?

• 11%

• 5%

• 7%

• 9%