Fed's Preferred Measure of Inflation Picks Up

The video discusses recent economic data, focusing on the PCE index, personal income, and spending. It highlights a slight rise in both headline and core PCE, indicating inflation is not aligning with the Fed's 2% target. Personal income increased by 0.6%, with spending rising by 0.4%. The discussion reflects on high prices and the fairness of price increases, noting that income growth outpacing price rises is seen as a positive outcome.

What was the year-over-year increase in the core PCE for October?

• 2.8%

• 2.5%

• 3.0%

• 2.3%

How much did personal income rise in the latest report?

• 6/10 of a percent

• 5/10 of a percent

• 4/10 of a percent

• 7/10 of a percent

What was the change in personal spending compared to the previous month?

• It increased by 1/10 of a percent

• It remained the same

• It decreased by 1/10 of a percent

• It increased by 2/10 of a percent

What narrative does the economic data support according to the speaker?

• An economic boom

• A Fed rate hike

• A Fed pause

• A market crash

According to the speaker, what is a possible reason for high prices?

• Rising wages

• Price manipulation

• Supply shortages

• Increased demand