Economy Still Seems Strong At The Consumer Level

In my view, rates will continue to rise, including the Fed implementing three 25 basis point raises; inflation is still too high, says David Donovan. He talks about how the latest personal consumption expenditure came in much higher than expected. This is a key indicator for the Fed. PCE was + .6 and both the CPI and PPI have been higher. You now have a terminal rate of 5.4 %. He then goes over how the economy still seems to be very strong at the consumer level. Consumer and personal spending was higher in January. Durable goods were lower which is a sign that maybe consumers will pull back. He also notes that this week, Target (TGT) and Costco (COST) will report and that will give us additional data on the consumer. Tune in to find out more about the stock market today.