BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager
(615) 591-0611 mbartlett@argenttrust.com
Released this morning, Personal Income grew 0.5% in October, slightly higher than estimates. Personal Spending grew 0.6% for the month, also above estimates. One measure of inflation, the Personal Consumption Expenditures (PCE) deflator, increased 2.0% on annual basis. The core rate, excluding food and energy, increased 1.8% annually. The data suggests consumers are continuing to increase their spending as their incomes rise, while inflation remains near Federal Reserve targets; a decent combination for sustaining economic growth. Coupled with Jerome Powell’s comments yesterday indicating the current rate is just below the estimated neutral range, the Federal Reserve has room to be measured and data dependent with their policy decisions in the months ahead. In all, equity futures and bond yields are lower this morning heading into the market open.
This information has been prepared by Argent Trust to highlight issues which may be of interest to the recipient and is not intended as legal, investment or tax advice. You are urged to seek legal, tax and accounting counsel for your particular situation before acting on topics discussed here. At Argent Trust, we assist our clients in managing and enhancing their wealth. Please call us at 615.591.0044 with questions or to schedule a meeting. © 2018 Argent Financial.
