Core #PCE inflation, the Fed's preferred measure of inflation, rose by 0.2% from the previous month, below the estimate of 0.3%, and increased by 2.8% year-over-year, matching the forecast of 2.8%. The market reacted positively to this news.
From now until the meeting early on June 13, there are still one Non-Farm Employment report and one #CPI inflation report for the Fed to consider. Currently, the market shows the following probabilities for rate changes by the end of the year:
No rate cut: 17.4%.One rate cut: 41% (highest probability, expected in November).Two rate cuts: 31.7%.Three rate cuts: 9%.