PCE Inflation Reached Its Highest Level in 3 Years. Here’s What Investors Need to Know.
Inflation is heating up, but investors could be getting some relief.
PCE Inflation Reached Its Highest Level in 3 Years. Here’s What Investors Need to Know.
Overview
Savvy stock market investors know that nothing can kill a bull market like inflation.
In 2022, soaring prices for goods cooled off the pandemic-era bull market, and pushed the Fed to jack up interest rates, sending stocks swooning that year. Similarly, the 1970s are widely considered a lost decade due to inflation, in part driven by rising oil prices.
Details
Investors are facing another energy crisis stemming from the standoff in the Strait of Hormuz, which is driving up prices again. The Personal Consumption Expenditures (PCE) report, the Fed’s preferred inflation gauge, showed prices rising at their fastest pace in three years.
Source
Originally published at www.fool.com.
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