The core PCE growth rate in the United States in June slightly exceeded expectations, but analysts say it is not enough to change the expectation of interest rate cuts in September.
The measure favored by the Federal Reserve to gauge potential inflation in the United States showed a moderate increase in June, while consumer spending remained healthy.
June PCE is coming tonight! Will it trigger a Fed rate cut?
The inflation indicator favored by the Fed is expected to confirm the continued move towards the 2% target for inflation. The June Personal Consumption Expenditures Price Index (PCE) will be released on Friday evening at 8:30pm, providing another key evidence for a rate cut in September.
USD: Oversupply of FX Drivers – ING
USA's GDP in the second quarter was strong, but it does not affect the Fed's interest rate cut in September!
According to analysts, the strong GDP data in the second quarter of the USA will not affect the Fed's interest rate cut in September. CIBC Capital Markets economist Ali Jaffery said, "Concerns about downward risks to the labor market, and making sufficient progress in inflation (clearly more housing anti-inflation is brewing) will still be enough to prompt the Fed to launch a loose cycle in September."
China International Capital Corporation: US growth is stable and does not support premature rate cuts.
Fixed asset investment performed well, equipment investment was strong, and inventory rebounded. The quarter-on-quarter growth rate of equipment investment rose sharply from 1.6% in the previous quarter to 11.6%, contributing 0.6 percentage points to GDP, showing that companies are increasing capital expenditures.
June US Personal Income Growth Expected to Slow, PCE Growth to Accelerate, Modest Price Gains