U.S. Core PCE Inflation Rises in June, Adding Another Variable to the Fed's September Rate Cut Outlook

BlockBeats News, July 31st: The slightly higher-than-expected June inflation data in the United States has added another variable to the Fed's rate cut timeline. The Fed's favored core PCE price index rose by 0.3% on a monthly basis and 2.8% year-on-year, slightly higher than the market's predictions of 0.29% and 2.7%. The overall PCE index, which includes food and energy, rose by 0.3% on a monthly basis and 2.6% year-on-year, also surpassing market expectations of 0.23% and 2.5%.

This better-than-expected inflation report has made the Fed's rate cut path more complicated. Policymakers had previously emphasized the need to see more evidence of inflation consistently returning to the 2% target, and the latest data may delay this process. (FX678)