Indicators closely monitored by the Fed pointed to a warming in inflation.
Personal spending in the US rose 1.8 percent in January.
Economists surveyed by Bloomberg had expected personal spending to increase by 1.4 percent in January. Real personal expenditures came in at 1.1 percent, in line with expectations.
It is expected that personal incomes will increase by 0.6 percent and 1 percent in January. under remained observed.
The core PCE, an inflation indicator closely followed by the Fed, rose 4.7 percent year-on-year in January. The expectation for this data was an increase of 4.3 percent. On a monthly basis, core PCE rose 0.6 percent. The expectation here was 0.4 percent.
The PCE deflator rose 0.6 percent month on month in January, beating expectations of 0.5 percent. On an annual basis, the PCE deflator rose 5.4 percent. In the Bloomberg survey, the expectation was 5%.