US August PCE figures under expectations: “very pleasing” for Fed

27 September 2024

 

Summary: US core PCE price index up 0.1% in August, below expectations; annual rate ticks up from 2.6% to 2.7%; Westpac: very pleasing results for Fed; Treasury yields fall; Fed rate-cut expectations firm, seven 25bp cuts priced in. One of the US Fed’s favoured measures of inflation is the change in the core personal consumption expenditures (PCE) price index. After hitting the Fed’s target at the time of 2.0% in...

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