US June PCE Data Reinforces Case for Fed Rate Cut, Analyst Says

IconCryptoNewsTerminal Staff26 Jul, 2024

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US June PCE Data Reinforces Case for Fed Rate Cut, Analyst Says

The US June personal consumption expenditure (PCE) data released on Wednesday was broadly in line with what experts had been expecting, according to eToro analyst Bret Kenwell. Although the core PCE year-over-year increase came in slightly above expectations, there was nothing in the report to suggest an unexpected reacceleration in inflation. "Combined with last week's below-consensus CPI data, this reinforces the case for the Fed to cut rates later this quarter," he said. "There is now a growing sense of anticipation in the market that Fed Chair Powell will prepare the ground for a rate cut in September when he speaks next week. "Everybody is hanging on every word from Powell's mouth," Kenwell added. "The Fed has been so transparent and keen to signal certainty before it acts over the past few years. Markets like certainty."

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