Squawk on the Street SOTS 2nd Hour: PCE Breakdown, Retail's "Big 5", and an Exclusive w/the CEO of American Express 11/27/24
Nov 27, 2024
The discussion kicks off with the latest PCE inflation data, shedding light on the economic health and market implications. Insights into the holiday retail landscape reveal a surge in consumer spending, particularly online. Experts emphasize the significance of small businesses facing challenges from inflation. A deep dive with the American Express CEO highlights shifting consumer behaviors. The chat also touches on potential regulatory risks in finance and the effects of upcoming government policies on the economy.
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Inflation Analysis
- The October PCE inflation data aligns with expectations, offering minimal clues about future Fed actions.
- Core PCE suggests a bumpy path down to 2%, with progress stalling slightly.
Savings Rate Normalization
- The personal savings rate has normalized since its COVID-era peak.
- Current levels are slightly above pre-COVID, signaling some consumer resilience.
Fed Rate Cut Advice
- The Fed should postpone any further rate cuts in December until Trump's policies become clearer.
- The current market rally and rising bond yields indicate a potential misalignment with the Fed's actions.