NEWSLETTER - June 3, 2024

The Fed’s preferred inflation measure rose 0.2% in April, as expected

• The personal consumption expenditures price index excluding food and energy costs increased 0.2% in April and 2.8% from a year ago.

• Headline PCE rose 0.3% and 2.7%, respectively, in line with estimates.

• Personal income increased 0.3% on the month, matching the estimate, while spending rose just 0.2%.

Sourced from CNBC

Bank of America CEO says U.S. consumers and businesses have turned cautious on spending

• Whether it’s households or small- to medium-sized businesses, Bank of America clients are slowing down the rate of purchases made for everything from hard goods to software, the bank’s CEO Brian Moynihan said.

• Consumer spending via card payments, checks and ATM withdrawals has grown about 3.5% this year to roughly $4 trillion, Moynihan said.

• That’s a sharp slowdown from the nearly 10% growth rate seen in May 2023, he said.

Sourced from CNBC

Bill Ackman selling stake in Pershing Square at $10.5 billion valuation, aiming for IPO one day

• Bill Ackman’s firm is raising $1.05 billion in a funding round, worth 10% of his management company Pershing Square, according to a source familiar with the matter.

• The hedge-fund manager is eyeing an initial public offering in the U.S. down the road, but he hasn’t hired bankers or started that process officially yet, the source said.

Sourced from CNBC