The PCE inflation data to be released next Wednesday is extremely critical. The market generally expects the PCE year-on-year rate to plummet from the previous value of 0.3% to 2.2%, and the core PCE is also expected to drop by 0.2% to 2.6%.
If the data meets expectations, it would signify a phase victory in the U.S. inflation issue, greatly increasing the probability of the Federal Reserve lowering interest rates. It is particularly noteworthy that the Federal Reserve's first interest rate cut is usually an important signal for the full onset of a bull market.
Although part of the reason behind this round of declining inflation is due to the recession caused by tariffs, the result is beneficial for the market, which can be seen as a blessing in disguise.
