Daily Market Update 1/30/12

Rates inched lower Monday as concerns about Greece hurt stocks and lifted mortgage-backed securities.  In economic news, the December Core PCE price index, the Fed’s preferred measure of inflation, rose 0.2% from November and was 1.8% higher than one year ago.  Although tame, the increase was above forecast.  Personal Income increased 0.5% in December, close to expectations.  This morning, while commenting on last week’s Fed statement, Philadelphia Federal Reserve Bank President Charles Plosser indicated the Fed may need to raise rates before 2014.  “It is not a commitment and shouldn’t be interpreted as a commitment.  It will depend on how the economy evolves”, said Plosser.

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