Mixed Week of Economic Data Highlighted by Stubborn Inflation. The week kicked off with
weaker than expected housing data as both building permits and new home sales missed consensus’
marks. Conference Board Consumer Confidence plunged yet again and is in danger of challenging the
pandemic low. However, the most impactful readings came from the PCE price index with the Fed’s
preferred gauge of inflation slightly above estimates at the headline and right on economists’ forecasts
for the core at 3.3%. The GDP price index likewise confirmed stubbornly high inflation at 6.4%, and
expectations for one hike this year remain firm. Personal Consumption bolstered the second estimate
of 2Q GDP at 1.5%. Jobless claims were slightly below expectations, offering more signs of firming
employment while the University of Michigan Sentiment surprised slightly but remains near lows.











