Laserfiche WebLink
For the Quarter Ended September 30, 2017REDWOOD CITYPFM Asset Management LLCPFM Asset Management LLCInflation pressures have declined from levels at the beginning of the year. The core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, slipped to 1.3% year-over-year in August. While some Fed officials expect this weakness to be transitory, the prospect for another rate hike in 2017 may be diminished should this trend continue.Although inflation expectations jumped following the U.S. election, the outlook has since softened, reflecting doubts in the administration’s ability to implement its agenda.Inflation Steadies but Outlook Remains WeakSource: Bloomberg, as of 9/30/17. Inflation expectations based on yield difference between 5-year Treasury note and 5-year Treasury Inflation Protected Securities (TIPS).0.0%0.5%1.0%1.5%2.0%2.5%Aug '12 Aug '13 Aug '14 Aug '15 Aug '16 Aug '17Inflation Measures(YoY)Core CPICore PCEFed's Long Term Inflation Target0.5%1.0%1.5%2.0%2.5%Sep '12 Sep '13 Sep '14 Sep '15 Sep '16 Sep '17Expectations for Average InflationRate Over Next 5 YearsMarket Update166.1.A. - Page 22