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US Core PCE Inflation Warms Up in June, Adding Uncertainty to Fed's Rate Cut Prospect in September
Summary: According to reports from FXStreet, US inflation data for June slightly exceeded expectations, adding uncertainty to the Fed's rate cut timetable. The core PCE price index favored by the Fed rose by 0.3% month-on-month and 2.8% year-on-year, slightly higher than market forecasts of 0.29% and 2.7%. The overall PCE index, including food and energy, rose ...
According to reports from FXStreet, US inflation data for June slightly exceeded expectations, adding uncertainty to the Fed's rate cut timetable. The core PCE price index favored by the Fed rose by 0.3% month-on-month and 2.8% year-on-year, slightly higher than market forecasts of 0.29% and 2.7%. The overall PCE index, including food and energy, rose by 0.3% month-on-month and 2.6% year-on-year, also surpassing market expectations of 0.23% and 2.5%.
This better-than-expected inflation report complicates the Fed's rate cut path. Policymakers had previously emphasized the need to see more evidence of inflation persistently returning to the 2% target, and the latest data may delay this process.
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Link: US Core PCE Inflation Warms Up in June, Adding Uncertainty to Fed's Rate Cut Prospect in September [Copy]
