eToro analysts: PCE data will lay the groundwork for Powell to cut rates as expected in September.
According to Odaily, financial investment services company eToro analyst Bret Kenwell stated that the US June PCE report was largely in line with economists' expectations, and the core PCE index's year-over-year increase was only slightly higher than expected. Nevertheless, the report showed no signs that inflation would accelerate unexpectedly. Combined with the lower-than-expected CPI report earlier this month and the recent trend of lower inflation data, this should give the Federal Reserve the green light to cut rates later this quarter. At next week's Federal Reserve meeting, all eyes will be on Powell, as people hope and expect him to lay the groundwork for a rate cut in September. In recent years, the Federal Reserve has been very transparent, announcing its actions well in advance, increasing more certainty, and the market likes certainty.
