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To create and update PostgreSQL variables using SQLAlchemy, you can use the text method to execute raw SQL queries. Here's an example of how you can create and update variables:

from sqlalchemy import create_engine, text
import pandas as pd

# create database connection
engine = create_engine('postgresql://username:password@host:port/database')

# create variables
engine.execute(text("CREATE TEMP TABLE my_var AS SELECT 1 as val;"))
engine.execute(text("UPDATE my_var SET val = 2;"))

# read data into pandas dataframe
df = pd.read_sql_query("SELECT * FROM my_var", engine)

# display dataframe
print(df)

In the above code, we first create a database connection using SQLAlchemy's create_engine function. Then, we use the text method to execute raw SQL queries, CREATE TEMP TABLE my_var AS SELECT 1 as val; to create a variable name my_var with a column value of 1 and UPDATE my_var SET val = 2; to update the variable value to 2. Finally, we use Pandas' read_sql_query method to read the data into a dataframe, which we then display.