PCE Inflation Gauge Suggests Cooling Inflation and Potential Rate Cuts

Tuesday, 24 September 2024, 19:25

Fed's favorite PCE inflation gauge is set to reveal a cooling inflation trend. Prices in August may rise, yet the overall direction points toward further rate cuts. This suggests an easing in monetary policy, impacting economic forecasts and financial markets.
Marketwatch
PCE Inflation Gauge Suggests Cooling Inflation and Potential Rate Cuts

PCE Inflation Gauge Signals Rate Cuts

The PCE inflation gauge, favored by the Federal Reserve, is anticipated to show inflation rates for August that may rise slightly above the 2% goal. However, the trend indicates a cooling inflation which may justify the central bank's decision to initiate more rate cuts in the near future.

Implications for the Economy

This cooling inflation can signify the Fed's potential shift in monetary policy, impacting borrowing costs and ultimately influencing various sectors. Investors should stay alert to how these changes might play out in financial markets.

  • Possible rate cuts ahead
  • Impact on borrowing costs
  • Economic forecasts affected

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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