THREE HEADLINES LIED TO YOU THIS WEEK: The Real Market Truth!

While the PCE price index showed cooling inflation, this was largely driven by a temporary dip in energy prices that has since reversed. The more accurate 'gross domestic purchases price index' actually spiked to 5.7%, indicating that the true cost of living is rising rapidly.

The personal savings rate remains at multi-year lows, suggesting that consumers are depleting their financial cushions to maintain their current standard of living. Economic growth has slowed more than expected, a combination of rising prices and falling productivity often referred to as stagflation.

Although the Fed held interest rates steady, the decision came from a highly divided committee. Furthermore, the bond market disregarded this stability, pushing the 10-year Treasury yield and mortgage rates to their highest levels since 2007, directly increasing borrowing costs for households.

To understand the true state of the economy, look beyond mainstream headlines. Monitor the 'gross domestic purchases price index' instead of just the PCE, and keep a close eye on the bond market rather than Fed statements to predict future borrowing costs.