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Savings-Rate Revisions Erase $140BN In American's Wealth As Fed's Favorite Inflation Indicator Jumps To 6-Month High

The Fed's favorite (when it's going down) inflation indicator - Core PCE - ticked up noticeably in October to +2.8%, the highest since April...

savings rate revisions erase 140bn in americans wealth as feds favorite inflation indicator jumps to 6 month high

Source: Bloomberg

Headline PCE rose 0.2% MoM (as expected) lifting it 2.3% YoY (up from +2.1% YoY prior)...

savings rate revisions erase 140bn in americans wealth as feds favorite inflation indicator jumps to 6 month high

Source: Bloomberg

A jump in Services and Durable Goods costs drove the reignition of inflation...

savings rate revisions erase 140bn in americans wealth as feds favorite inflation indicator jumps to 6 month high

Source: Bloomberg

Incomes - for once - grew at a faster rate than spending (+0.6% MoM vs +0.4% MoM respectively)....

savings rate revisions erase 140bn in americans wealth as feds favorite inflation indicator jumps to 6 month high

Source: Bloomberg

...and while that bumped up the savings rate MoM, thanks to massive revisions, Americans lost $140BN in personal savings... out of nowhere...

Remember when they revised it from 2.4% to 5.0% in late September to bump up GDP? Well, we guess Kamala isn't president.. so all bets (adjustments) are off...

And finally, imagine how bad things would be if the government wasn't handing over billions to 'we, the people' all of a sudden...

savings rate revisions erase 140bn in americans wealth as feds favorite inflation indicator jumps to 6 month high

Source: Bloomberg

Bye, bye, rate-cut expectations!...

Authored by Tyler Durden via ZeroHedge November 27th 2024