Thread by @MBjegovic

Feb #PCE, #Fed's preferred measure of #inflation, came in cooler than expected.

But 1M doesn't make a trend.

What does the #PCE tell and what it all means for the #Fed?

Let's dig deeper.

A thread.

1/

As I said in in the Jan #PCE thread, Jan reading looks a lot like Oct. Both were outliers in an otherwise deflationary trend since July.

https://twitter.com/MBjegovic/status/1629306395571920897?s=20

#inflation

2/8

#PCE services #inflation with real rent #inflation (ALNRI) has been quite tame since July 2022.

3/8

Both headline and core #PCE with real rent #inflation (ALNRI) have been mostly tame since July 2022.

4/8

But some say, #inflation is still high and the #Fed should take that in mind when deciding about rates.

I say "high inflation" has been a false narrative for so many M, ever since #inflation peaked late spring last yr.

For more read:

https://twitter.com/MBjegovic/status/1640819252386205697?s=20

5/8

#inflation is not a problem anymore but does the #Fed realize that?

What will they do in May and going forward?

Where will the economy go in 2023?

How will the markets react to all that?

6/8

This thread took a lot of time and effort to write.

If you like the content, please love and retweet tweets of this thread to help me spread the message.

Thank you!

7/8

I will have

Pick Marko's Brain Workshop

Tuesday next week (Apr 4) at 11 am ET

where I'll answer these Qs in a presentation about the #Fed, its key indicators, economy and markets.

I will also answer your own Qs directly in the workshop.

If you wish to attend message me.

8/8