#BinanceVietnamSquare

⭐️ The US PCE price index continues to deviate from the Federal Reserve's target:

The annual rate of the PCE price index, the Federal Reserve's preferred inflation measure, rose 2.5% year-over-year in February, a 0.1% increase from the previous month. Meanwhile, the annual core PCE rate was unchanged at 2.8%. The increase in PCE is not very good news for Biden and the Fed. The Fed is looking for more evidence that its action to reduce inflation by raising interest rates is working. The Fed's goal is for PCE inflation to reach 2%.

Before the PCE announcement, both US CPI and PPI were better than expected. Since June 2023, CPI inflation has fluctuated between 3% and 3.7%, but has never fallen within the 2%-3% range. Additionally, despite higher interest rates, the U.S. economy overall is still growing well, with consumer confidence rising to its highest level in more than two years in March. The labor market also continues to overshoot expectation. The biggest question facing many economists at the time was when the Fed would start cutting interest rates.

😀Analysts say that traders now expect a rate cut that is 0.75 points lower than the 2024 rate cut the Federal Reserve predicted in its March dot chart. basic.

Tonight's PCE data could confirm these expectations when markets reopen next week and could even push bets closer to the central bank's forecast.