The Federal Reserve's pace of interest rate cuts will remain unchanged, and the August core PCE data supports gradual easing

ChainCatcher news, according to Jinshi reports, the U.S. core PCE inflation in August remained basically stable, which may allow the Federal Reserve to continue its previously set pace of interest rate cuts. The U.S. Department of Commerce reported that the PCE price index rose by 0.3% month-on-month in August, with an annualized overall inflation rate of 2.7%. The core PCE price index, excluding food and energy, increased by 0.2% month-on-month, with an annualized rate of 2.9%. Although the Federal Reserve's inflation target is 2%, this data is unlikely to change policymakers' stance, as they expect to implement two more 25 basis point rate cuts before the end of the year.