Here are three things I think I am thinking about this weekend: 1) Is the Disinflation Trend about to Gain Momentum Again? Friday’s PCE report showed further improvement in inflation down to 2.75% compared to the year ago rate of 4.76%. There has been a lot of commentary in recent months about a resurgence in inflation or a failure of the Fed to get to its target and while the progress has slowed the trend is still clearly in place and likely to gain momentum to the downside in the remainder of the year. One problem with the recent data is that much of it is appearing sticky due to imputed costs such as financial ... (full story)