🚨BREAKING NEWS TODAY🚨
📊PCE GROWTH IN MAY RISES TO 2.3% – MATCHING FORECAST OF 2.3%
📊CORE PCE GROWTH IN MAY RISES TO 2.7% – BEATING EXPECTATION OF 2.6%
📝May PCE data shows that inflationary pressures remain persistent. The PCE consumer price index (headline) increased by 2.3% compared to the same period last year, fully aligning with market forecasts, while core PCE (excluding food and energy price fluctuations) rose by 2.7%, exceeding expectations of 2.6%. This increase partly reflects that service prices and housing costs remain high, making it difficult for core inflation to quickly drop to the Fed's target of 2%.
📝The immediate reaction in the foreign exchange market was a slight decline in the USD, while US Treasury yields remained stable after the report. In this context, many experts and traders believe that the Fed will keep interest rates unchanged at the July policy meeting, at least until more data confirms a more stable inflation trend.
📝Regarding outlook, if core PCE continues to stay above 2.5%, the Fed may postpone plans to cut interest rates expected at the end of the year and prioritize "caution and prudence" to fully assess the impact of tariffs and housing costs on prices. Investors should closely monitor personal income and outlays reports and CPI to better predict policy moves in the coming months.