On top of today’s news that inflation (as measured by Core PCE Price Growth) is flat at 1.5% YoY, the same BEA report shows that the Personal Savings Rate in the USA fell to -24% YoY.
The balance between QE and Treasury supply will begin to shift in July. The underlying bid it has provided for stocks and Treasuries will begin to fade.
This report tells why, and what to look for in the data and the markets. GO TO THE POST
At least Personal Income growth is 2.6% YoY.
Bear in mind that the estimates released today reflect the results of the annual update of the national income and product accounts (NIPAs) in conjunction with preliminary estimates for June 2017. The update covers the most recent 3 years and the first 5 months
This revision to savings just wiped out $226 billion.
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