Reported 10 days ago
Recent PCE inflation data indicates that the Federal Reserve may opt for smaller rate cuts in its upcoming meetings. The core PCE index rose to 2.7% year-over-year in August, aligning with expectations but still above the Fed's 2% target. This reading suggests that a significant cut of 50 basis points may be overly ambitious, leading some analysts to anticipate a more conservative approach of cutting rates by 25 basis points. Fed officials express cautious optimism, highlighting the need to keep a close watch on labor market conditions prior to the decision in November.
Source: YAHOO