PCE Data Suggests Fed Rate Cut in September, Powell in Spotlight
Publication Time:2024-07-26 22:01:06
Analyst Bret Kenwell of financial investment service company eToro noted that the US June Personal Consumption Expenditures (PCE) report aligned with economists' expectations, with the core PCE index showing an increase slightly above forecast. However, there were no indications in the report that inflation would suddenly accelerate. Additionally, the lower-than-expected Consumer Price Index (CPI) report released earlier this month, along with recent trends in inflation data pointing downwards, laid the groundwork for the Fed to consider a rate cut later in the quarter. Attention is now focused on next week's Federal Reserve meeting, where market participants anticipate clear signals from Chair Powell regarding the anticipated September rate cut. In recent years, the Fed has maintained a high level of transparency in its policy adjustments, announcing its plans well in advance, which adds certainty to the market. This certainty is valuable to investors as it helps them better understand future economic trends and interest rate changes.
PCE data
Federal Reserve
Powell
Interest Rate Cut
Consumer Price Index report