🚨 Negative Data Alert! 🚨
##ALERT
The U.S. Department of Commerce released data yesterday revealing that the month-on-month growth rate of the U.S. CPE price index dropped from 0.3% in April to 0% in May, marking the lowest rate since November 2023. Additionally, the year-on-year growth rate of the core PCE index in May declined by 2.6%.
This downturn suggests that the Federal Reserve may reduce interest rates by 25 basis points in September, with a 61% probability. Should this trend persist over the next two months, the Fed might gain the confidence to implement another rate cut in September.
Mary Daly, the President of the Federal Reserve Bank of San Francisco, remarked that today's personal consumption expenditure data is encouraging, indicating that inflation is cooling down.