Although Americans generally received fiscal stimulus checks at the beginning of the year and personal spending also stopped falling for two months, the rise in income and expenditure did not bring significant inflationary pressure. According to statistics from the U.S. Departmen

Although Americans generally received fiscal stimulus checks at the beginning of the year and personal spending also stopped falling for two months, the rise in income and expenditure did not bring significant inflationary pressure.

According to statistics from the US Department of Commerce, the US personal consumption expenditure (PCE) price index in January increased by 0.3% month-on-month, slightly higher than the market's expectations of 0.2%, but lower than the previous value of 0.4%; it increased by 1.5% year-on-year, the largest increase in nearly a year, higher than the expected 1.4% and the previous value of 1.3%, but still lower than the Federal Reserve's official inflation target of 2%.

After excluding the volatile food and energy prices, the core PCE price index is the inflation indicator favored by the Federal Reserve. This data increased by 0.3% month-on-month in January and 1.5% year-on-year, both higher than expected and remained the previous value, with the largest year-on-year increase in four months and still far below 2%. Analysts said that this shows that price pressure is gradually increasing, but the overall inflation indicator has been relatively weak during the epidemic. After the release of

data, the yield on US bond once fell in the short term, and then returned to the 1.50% line, and the overall decline was still on the day. Another data released later by

showed that the final value of the US Michigan Consumer Confidence Index fell month-on-month to its lowest in six months, with inflation expectations in the coming year flat at 3.3%, the highest since 2014. This may drive the decline of US stocks in the early trading in the short term. The Nasdaq once turned down, the Dow Jones Industrial Average fell by more than 300 points, and gold and silver fell sharply.

In addition, the United States' personal income increased by 10% month-on-month in January, the second highest monthly increase in history and the largest increase in nine months since April 2020. The largest increase in history occurred in April last year, when the US government issued the first round of anti-epidemic funds.

, a financial blogger Zerohedge, who has always been known for his toxic tongue, sarcastically said that the United States has now become a "welfare country", , because without the transfer payments to everyone by , which does not have the federal government to issue checks to everyone and increases unemployment benefits, personal income in January actually fell month-on-month.

U.S. personal consumption expenditure (PCE) rose 2.4% month-on-month in January, driven by a $600 stimulus check per person at the beginning of the year and an additional $300 per week, the first increase in three months and the highest level since last summer. Service expenditure was the first month-on-month increase since October last year, partially reflecting the impact of economic lockdowns and easing travel restrictions.

And the U.S. Congress is trying to pass a new round of fiscal stimulus of $1.9 trillion, including direct payment of $1,400 per person and additional unemployment allowance of $400 per week. "Because spring weather allows more outdoor activities and more people are vaccinated with the new crown vaccine, consumers will tend to spend this money," which will drive consumer spending and U.S. economic growth.

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