Analyst: PCE data paves the way for the Federal Reserve to cut interest rates later

ChainCatcher news, according to Jinshi reports, eToro analyst Bret Kenwell stated that the U.S. June PCE report largely met economists' expectations, with the core PCE index year-on-year increase slightly above expectations. Nevertheless, there were no signs in the report indicating that inflation would unexpectedly accelerate. Coupled with the earlier-than-expected CPI report this month and the recent trend of lower inflation data, this should give the Federal Reserve the green light to cut interest rates later this quarter.

In next week's Federal Reserve meeting, all eyes will be on Powell, as people hope and expect him to lay the groundwork for a rate cut in September. In recent years, the Federal Reserve has been very transparent, announcing its actions well in advance, which has increased certainty, and the market likes certainty.