Recently, the latest data released by the US Department of Commerce showed that the annual growth rate of the U.S. core personal consumption expenditures (PCE) price index in May hit a new low since March 2021. This data undoubtedly brought a new perspective to the current global economic situation and had a profound impact on the Federal Reserve’s future monetary policy decisions.

The core PCE price index, as one of the most closely watched inflation indicators of the Federal Reserve, directly reflects the changing trend of domestic consumer price levels in the U.S. Compared with the Consumer Price Index (CPI), the PCE price index is more comprehensive and detailed in measuring inflation levels and can more accurately reflect the actual situation of economic activities.

Data show that the annual growth rate of the core PCE price index in the United States slowed down significantly in May. This change was mainly due to the fall in energy prices and the stability of some goods and services prices. Among them, the decline in energy prices is particularly obvious, mainly due to the increase in supply and decrease in demand in the international crude oil market. The stability of prices of goods and services reflects the gradual return of the U.S. economy to normalcy after a period of high inflation.

From the perspective of slowing inflation, this data undoubtedly provides strong support for the Fed's future monetary policy decisions. In the past period of time, the Fed has adopted tightening monetary policy measures such as raising interest rates to deal with high inflation. However, as inflation levels gradually fall, the Fed may need to reassess the orientation of its monetary policy to avoid excessive tightening that has a negative impact on the economy.

In this context, the market generally expects the Fed to keep interest rates stable or moderately lower for some time to come. This expectation has also been confirmed by Fed officials, who said they will closely monitor changes in economic data and adjust monetary policy based on actual conditions.

However, despite the slowdown in inflation, the Fed still needs to be cautious when adjusting its monetary policy. On the one hand, the global economic situation remains complex and volatile, and the Fed needs to weigh changes in the domestic and international economic environment; on the other hand, there are also some uncertainties in the US economy itself, such as the job market and the real estate market. Therefore, the Fed needs to take various factors into consideration when formulating monetary policy to ensure stable economic growth and stable prices.

In short, the record low annual growth rate of the US core PCE price index in May has brought a new perspective for interpreting the global economic situation and has a profound impact on the Fed's future monetary policy decisions. Against the backdrop of slowing inflation, the Fed needs to act cautiously, take various factors into consideration, and formulate appropriate monetary policies to cope with future economic challenges. #美国5月核心PCE物价指数年率增幅创2021年3月以来新低 #Mt.Gox将启动偿还计划 #币安合约锦标赛 #VanEck提交首个SolanaETF #IntroToCopytrading