The GDP of the Beautiful Country unexpectedly turns negative, does the PCE 'hold' inflation? The market may have to reprice.
Just released a wave of data:
Q1 actual GDP annualized quarter-on-quarter final value recorded at -0.5%
Directly lower than the initial value of -0.2%, the speed of economic slowdown exceeds expectations, this is already the knock of technical recession.
Core PCE annualized quarter-on-quarter final value 3.5%, rising instead of falling
Higher than the expected 3.4%, the previous value is also 3.4%. This means inflation stickiness is still present, does the Federal Reserve want to cut interest rates? The difficulty is not small.
Initial unemployment claims number 236,000, slightly lower than expected
The labor market remains resilient, seemingly healthy, but when combined with negative GDP growth, it appears particularly strange.