The growth rate of core PCE in the United States slowed down in February, and the market predicted that the Fed's interest rate hike cycle may be coming to an end.
The picture shows Fed Governor Waller.
[Compile Wei Guojin/Comprehensive Report] According to data from the US Department of Commerce, the core personal consumption expenditures price index (PCE) in the US in February, excluding food and energy, increased by ○.
Three percent, an annual increase of four.
6%, compared with January's ○.
Five percent, four.
The 7 percent slowdown in growth suggests the Federal Reserve may be drawing to a close with its most aggressive rate-hiking cycle in decades.
Fed Governor Waller also said that recent data is consistent with the view that the Fed can reduce inflation without seriously hurting the labor market.
The Fed's preferred measure of inflation, the "core PCE," saw its annual growth rate in February the smallest since October 2021, and the overall PCE monthly growth rate was ○.
3%, an annual increase of 5%, also lower than January's ○.
Six percent and five.
Other data include monthly growth in personal income ○.
3%, slightly higher than the expected ○.
2%, monthly increase in expenditure ○.
2%, lower than the expected ○.
Please read on...
Roach, chief economist of LPL Finance, pointed out that "the trend of inflation looks promising to investors. Inflation is expected to fall below 4% by the end of this year. If the economy falls into recession, the Fed still has room to cut interest rates before the end of the year."
Economists Wenger and others said, "Considering the expectation of tighter financial conditions after the collapse of Silicon Valley banks, this PCE data reflects a faster-than-expected slowdown in inflation, showing that the peak of the Fed's benchmark interest rate is not far away."
Fed director Waller also pointed out that relevant data show that the Fed may be able to reduce inflation without causing the unemployment rate to soar.
According to data from the US Department of Labor, as of the week ended March 25, the number of initial jobless claims reached 19.
80,000, although slightly higher than expected, but in the past 12 weeks, ten weeks have been below 200,000, and the unemployment rate in the United States in February is three.
6%, near record lows.
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