Personal income and spending data to come
The Fed’s preferred measure of inflation is due at the bottom of the hour and expected to show prices rising 3.9% y/y. Core PCE is forecast to rise 3.4% y/y.
The report also looks at the health of the consumer with income forecast to fall 2.5% on falling stimulus payments and spending to rise 0.4%.
The market is going to be focused on the inflation data after the +5% CPI reading in May but there’s a clear pattern of dip buying on high inflation prints. The data is due at the bottom of the hour.