Fed’s Favorite Econ Indicator Slips As Monday’s Data Comes Up Short

Here’s Monday’s key econ data (note the bolded bits):

• U.S. March Personal Income Rose 0.2%; Est. Up 0.3%
• Personal consumption was unchanged; est. up 0.2%
• Personal consumption forecast range -0.2% to 0.4% from 72 economists
• Personal income forecast range 0% to 0.4% from 73 economists
• Real personal spending rose 0.3%; est. up 0.4%
• Core inflation fell 0.1%; est. -0.1%; rose 1.6% Y/y
• PCE prices fell 0.2%; est. -0.2%; rose 1.8% Y/y (first decline since February last year)
• Compensation at 0.1% in March vs 0.4% the prior month
• Savings rate at 5.9% in March vs 5.7% the prior month

The knee-jerk is predictable but, thanks to the risk-on bump we got last night from the deal on Capitol Hill, we had a cushion…