eToro analyst: PCE data gives the Fed the green light for a rate cut later

Odaily News Bret Kenwell, an analyst at financial investment service company eToro, said that the US PCE report in June was basically in line with economists' expectations, and the year-on-year increase in the core PCE index was only slightly higher than expected. Despite this, there is no sign in the report that inflation will unexpectedly accelerate. Coupled with the lower-than-expected CPI report earlier this month and the recent trend of lower inflation data, this should give the Federal Reserve a green light to cut interest rates later this quarter. At the Fed's meeting next week, all eyes will turn to Powell, who is hoped and expected to lay the foundation for a rate cut in September. In recent years, the Federal Reserve has been very transparent, announcing its actions long in advance, adding more certainty, and the market likes certainty. (Jinshi)