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📊 PCE Inflation Update: Markets Eye Fed's Next Move
The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose by 2.5% year-over-year in June 2024, slightly down from May's 2.6% and aligning with market expectations. Core PCE, which excludes food and energy prices, increased by 2.6% annually.
This cooling inflation trend bolsters expectations for potential interest rate cuts by the Fed, possibly starting in September.
Market reactions were measured, with major indexes showing modest movements:
Investors are closely monitoring upcoming economic indicators, including labor market data, to gauge the Fed's next steps.
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