PCE data could help the Fed maintain one or two rate cuts this year

Odaily Planet Daily News: Stock index futures moved higher after the PCE data was released, while long-term bond yields moved lower. The first reaction seemed to be that milder inflation data could mean that the Federal Reserve is likely to cut interest rates further. "While additional rate cuts may be several months away, we believe this report helps the Federal Reserve maintain one or two rate cuts in 2025," said Robert Ruggirello, chief investment officer of Brave Eagle Wealth Management, in a report. Futures contract traders continue to bet that the Federal Reserve will restart rate cuts in June as data showed that inflation rose in January in line with expectations. They still believe that the second rate cut in September is more likely than no rate cut. The data showed that the annual rate of the personal consumption expenditure price index fell from 2.6% in December to 2.5% last month, and the core PCE index fell to 2.6%. (Jinshi)