The Federal Reserve's rate cut pace will remain unchanged; August core PCE data supports gradual easing

ChainCatcher news, according to Golden Ten Data, the US core PCE inflation in August remained basically stable, which may allow the Federal Reserve to maintain its previously established pace of interest rate cuts. The US Department of Commerce reported that the PCE price index in August rose by 0.3% month-on-month, with an annualized overall inflation rate of 2.7%. Excluding food and energy, the core PCE price index increased by 0.2% month-on-month, with an annualized rate of 2.9%. Although the Federal Reserve's inflation target is 2%, these data are unlikely to change policymakers' approach, and they are expected to implement two more 25 basis point rate cuts before the end of the year.