Inflation

Inflation

Will PCE inflation support bets of Federal Reserve rate cut in September? The core Personal Consumption Expenditures (PCE) Price Index, the US Federal Reserve’s (Fed) preferred inflation measure, will be published on Friday by the US Bureau of Economic Analysis (BEA) at 12:30 GMT.

What to Expect from the PCE Inflation Data

Investors and analysts will be closely watching the release of the core PCE Price Index to gauge the level of inflation in the US economy. This data will provide valuable insights into whether the Federal Reserve will proceed with a rate cut in September to stimulate economic growth.

Implications for the Federal Reserve's Decision

If the PCE inflation data comes in below expectations, it could increase the likelihood of a rate cut by the Federal Reserve. A lower inflation rate may prompt the Fed to take action to support the economy and prevent a slowdown. On the other hand, higher-than-expected inflation could lead to a delay in rate cuts as the Fed aims to maintain stable prices and maximum employment.