U.S. Inflation Pressures Persist as February PCE Data Anticipated

The market anticipates that the U.S. February Personal Consumption Expenditures (PCE) data will indicate ongoing inflationary pressures. According to BlockBeats, consensus expectations suggest a month-on-month increase to 0.4% and a year-on-year rate holding at 2.8%, with core PCE year-on-year at approximately 3.0%, significantly above the Federal Reserve's 2% target. Analysts highlight that the current inflation rebound is primarily driven by rising commodity prices and increasing energy costs, while 'super core services inflation' remains notably sticky, making a short-term decline unlikely. In this context, the Federal Reserve is expected to maintain the interest rate range of 3.50%-3.75% at its April meeting, marking the third consecutive pause in rate cuts. Market pricing has also shifted rapidly, with over 97% of traders betting on no change in April, and expectations for rate cuts within the year have cooled significantly, with mainstream views shifting towards a 'later, less' easing path.