Recently, I saw a survey from Reuters indicating a significant adjustment in the forecast for U.S. PCE inflation.


Originally, it was expected that inflation would gradually decline in the second half of this year, but the latest forecast shows that U.S. PCE will reach an average of 3.7% in the second quarter, which is 0.4 percentage points higher than the expectations in last month's survey.

What's even more interesting is that the forecasts for the third and fourth quarters have also been revised upward.
The third quarter has been raised from 3.1% to 3.4%, and the fourth quarter from 2.9% to 3.2%.
This suggests that U.S. PCE inflation might be more "sticky" than the market previously thought, with a slower downward pace.

For traders, this information is a bit of a blow, because rising inflation expectations usually mean that the Federal Reserve's timetable for cutting interest rates could be pushed back.
People paying attention to the U.S. PCE trend have probably been digesting this change these days, watching how it will influence market expectations next.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin