US consumer spending stays strong while income growth slows, weakening rate outlook
US consumer spending grew and the Federal Reserve’s preferred inflation measure accelerated as expected in September, but income growth slowed – helping ratify the case for a plateau in benchmark interest rates near prevailing levels. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index – targeted by central bankers – rising 0.3 percent in September from the prior month, up 3.7 percent year-over-year – aligning perfectly with consensus estimates. The overall personal consumption expenditures index was up 3.4 percent from a year ago. Personal income rose 0.3 percent month-over-month, decelerating slightly from...