The US Federal Reserve's 0.25% rate cut in September and the expectation of a significant rate cut thereafter, driven by PCE prices.

August 31, 2024, 1:30 AM GMT+9

Following the announcement of the Personal Consumption Expenditures (PCE) Price Index for July by the U.S. Department of Commerce, the Federal Reserve (FRB) decided to lower interest rates by 0.25% in September, with expectations of a further significant decrease of 0.5% in subsequent meetings in the financial market.
The total expected reduction in interest rates for the year by the market is still 1.0%.
The Personal Consumption Expenditures (PCE) Price Index for July, as announced by the Department of Commerce, showed a 2.5% increase compared to the previous year, with the growth rate remaining unchanged from the previous month.

Updated on August 31, 2024, 0:44 JST
PCE Core Price increases 1.7% on a 3-month annualized basis - the slowest growth so far this year.
Service inflation, excluding housing and energy, has the lowest growth in over three years compared to the previous year.

In July, U.S. personal consumption expenditure (PCE) showed accelerated growth, but the core price index excluding the volatile food and energy remained at a moderate increase. This supported the speculation that the U.S. central bank will start cutting interest rates next month.
PCE core price index rose by 0.2% compared to the previous month, matching the financial estimates.
Also rose by 0.2% the previous month.
Rose by 2.6% compared to the same month last year, matching the financial estimates of a 2.7% increase.
PCE comprehensive price index rose by 0.2% compared to the previous month, matching the financial estimates.
Rose by 0.1% the previous month.
Rose by 2.5% compared to the same month last year, matching the financial estimates.
PCE increased by 0.5% compared to the previous month, matching the financial estimates.