JPMorgan Predicts Possible Fed Rate Cut as Core PCE Data Eyed for Mild Inflation Reading

COINOTAG news, September 27, numerous analysts forecast that the U.S. core PCE price index monthly rate in August will likely be under 0.2%. A moderate reading of 0.1% could push the 12-month core PCE annual rate just above the Federal Reserve’s 2% target, approximating 2.3%. However, economists at JPMorgan predict that the annualized inflation rate for the past quarter will hover between 1.8% and 1.9%. This potential scenario may pave the way for the Fed to implement a further 50 basis points interest rate cut in November. JPMorgan also noted that barring any unexpected developments in today’s PCE data, the upcoming September non-farm payroll report, set to be released next week, will deliver more definitive guidance. (Jinshi)