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The PCE Deflator y/y (Personal Consumption Expenditures Price Index year-over-year) is an important economic indicator that measures the change in prices for goods and services consumed by households over a 12-month period. It is used as an inflation measure by the US Federal Reserve and other policymakers to assess the health of the economy.
The PCE Deflator y/y is important because it is a comprehensive measure of price changes and is closely related to consumer spending, which accounts for a significant portion of the US economy. The Federal Reserve uses the PCE Deflator y/y as a guide for monetary policy, aiming to keep inflation at a stable level of around 2%. If the PCE Deflator y/y exceeds the targeted level, the Federal Reserve may raise interest rates to cool off the economy and prevent inflation from getting out of control. Conversely, if the PCE Deflator y/y is below the target, the Federal Reserve may lower interest rates to stimulate economic growth. Investors also monitor the PCE Deflator y/y as it can impact the financial markets. If the PCE Deflator y/y is higher than expected, it may lead to increased volatility in the bond and stock markets, as investors anticipate potential interest rate hikes. In contrast, if the PCE Deflator y/y is lower than expected, it may signal weaker economic growth, which could lead to lower stock prices.
ADP Employment Change |
Average Hourly Earnings |
Average Weekly Hours |
Budget Balance NEXT:11-Dec-2024 |
Building Permits NEXT:18-Dec-2024 |
Business Inventories / Sales Ratio NEXT:17-Dec-2024 |
Business Inventories m/m NEXT:17-Dec-2024 |
Business Inventories y/y NEXT:17-Dec-2024 |
Business Sales m/m NEXT:17-Dec-2024 |
Business Sales y/y NEXT:17-Dec-2024 |
Capacity Utilization Rate m/m NEXT:17-Dec-2024 |
Capital Account Balance NEXT:18-Dec-2024 |
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