Core PCE

Consumer spending and income for November:

  • Personal income +0.3% vs +0.2% expected. Prior month +0.6%
  • Personal spending +0.2% vs +0.3% expected. Prior month +1.8%
  • Real personal spending -0.1% vs +1.1% prior

These numbers should give the Fed a bit more confidence that hiking just 25 bps at the last meeting was the right call and that there's no need (for now) to hike above 5.25%. There will be one more PCE report before the May 3 FOMC and the market is currently pricing in a 55% chance of a 25 bps hike.