Flat Core Pce, Rising SPEENDING: IS The FED DONE HIKING RATES THIS CYCLE?

Core Inflation Stable, Real Income Growth Holds The PCE PRICE INDEX WAS FLAT for March, with Core Pce (Excluding Food and Energy) Also UNCHANGED ON THE MONTH. On a year-over-year Basis, Headline PCE Rose 2.3%, While Core Pce Ticked Up 2.6%. This Marks A PAUSE IN RECENT INFLATION PRESSES AND ALIGNS WITH the Federal Reserve’s Recent Tone of Patience. Meanwhile, Real Disposable Income Also Rose 0.5%, Indicating That Wage Gains are Managing to Offset Inflationaary Pressures for Now. Compensation Growth Was Led by Private-Sector Services, Contributing $ 46.4 Billion, Followed By Goods-Powding Industries with 11.8 Billion.

PENDING HOME Sales Rise Sharply in March The Housing Sector Showed Renewed Strength, With The Pender Home Sales Index Climbing 6.1% MONTH-OVER-MONTH. Gains Were Concentrated in the South, While the Northeast ExperienCed A Decline. Accorness to Nar Chief Economist Lawrence Yun, Ongoing Job Growth and Sensitivity to Mortgage Rate Shifts Are Influening Contract Signings. While not all pending sales lead to closings, the increase points to renewed buying interest as market conditions stabilize.

Market Forecast: Neutral to Bullish The Combination of Stable Core Inflation and Robust Consumer Spending Supports A Neutral-To-Bullish Short-Term Outlook for Us Equity and Bond Markets. Inflation Staying Flat May Relieve Pressure on the Fed to Hike Rates, While Rising Conspheering and Housing Activity Suggest Continued Economic Expansion. Traders Should Watch UpComing April Cpi and Labor Data for Confirmation of this Trend.