Daily Market Update 1/31/14

Rates inched lower Friday as a sharp decline in stocks boosted mortgage-backed securities.  In economic news, the December Core PCE inflation index, the Fed’s preferred measure of inflation, increased 0.1%, in line with expectations, and was a tame 1.2% higher than one year ago.  Personal Income was flat, which was below forecast.  The Chicago Purchasing Managers Index declined to 59.5, matching the consensus.  Readings above 50.0 indicate expansion in manufacturing in the Midwest region.  Today is Ben Bernanke’s last day as Chairman of the Federal Reserve.  He will be replaced by Janet Yellen, who is expected to maintain similar policies.  Next week’s big economic news will be Friday’s release of the Employment Report for January.  No other key data will be released today.

Back to top