Social Security cut of 22%? Read the report. If no action is taken until then, benefits will be cut nearly 30% without some form of tax increase. And cuts would continue through 2100.
7️⃣ Common Misconceptions About Retirement Planning – New on @SquaredAwayBC
From Social Security financing to long-term care to the $1 million savings goal, these myths may drive people toward suboptimal retirement choices.
🔗 https://t.co/aHTO9zjG3Q
PCE rose to 4.1% y/y in May, its highest since April 2023. Nondurable goods (i.e. energy) were the primary reason, but there was an uptick in services as well.
The Fed's preferred measure of inflation (Core PCE) moved up to 3.4% in May, the highest level since October 2023.
This was the 63rd consecutive reading above the Fed's 2% target level.
"We've missed for 5 years. And we're gonna fix that." - Kevin Warsh last week
Please find below a Bloomberg table summarizing this morning's US data releases.
Three considerations from my end:
Monthly PCE inflation, the Federal Reserve's favorite measure, came in line (core) to somewhat softer (headline) than the consensus forecasts. This brought annual headline inflation to multi-year highs -- 4.1% for headline and 3.4% for core.
The monthly data should help moderate rate hike expectations, despite what remains strong economic activity data.
It would not surprise me if this May PCE inflation data or June's ends up being the peak for this cycle -- especially at the headline level.
#economy #inflation #markets
BREAKING: US May PCE inflation, the Fed's preferred inflation metric, rises to 4.1%, the highest reading since April 2023.
Core PCE inflation rose to 3.4%, its highest since October 2023.
US inflation is now officially running at more than double the Fed's 2.0% target.
Both PCE and CPI Headline topped 4%, and Fed Funds rate still topping out at 3.75%. Many will call for hikes in July. However, all of these inflation indications are now as stale as that gas can left open for a week in the back shed.
In my first decade, this is one of those retirement rules of thumb that I found were "all thumbs." Strategic withdrawals while waiting for 70 sometimes exceeded 4%. https://t.co/hjm1dT9UTd
I had the privilege of crossing paths with #AlanGreenspan many times over the past 20 years. Few people have shaped the vocabulary of markets the way he did, even when (especially when) no one was quite sure what he’d just said. I have the @NewYorker cartoon below hanging in my office. He was a true original. Rest in peace.
Did anyone else wonder who the other FOMC member to decline to put a dot in 2028? See my video on what this all means to a DIY retiree: https://t.co/0O1WZQRsBJ
The Dot Plot? Chair Kevin Warsh didn't play, but who was the other FOMC participant who declined to submit a dot for 2028? Could it have been now Gov. Powell? Latest video looks at what "Dot" means for a DIY retiree:
https://t.co/0O1WZQQUMb
The Dot Plot? Chair Kevin Warsh didn't play, but who was the other FOMC participant who declined to submit a dot for 2028? Could it have been now Gov. Powell? Latest video looks at what "Dot" means for a DIY retiree:
https://t.co/0O1WZQQUMb